Billion-Dollar Settlement in Toyota Sudden Acceleration Suit
- December 26, 2012
Japanese auto maker Toyota Motors agreed to a settlement of $1.1 billion this week in a class-action lawsuit involving sudden-acceleration issues in its vehicles.
Under the terms of the settlement, the company will set up two $250 million funds to compensate vehicle owners who lost money when selling their defective vehicles.
The rest of the settlement money will go towards a 10-year customer care plan for Toyota owners who did not sell their vehicles.
Instances of sudden acceleration in Toyota vehicles tarnished the auto giant's reputation for manufacturing quality vehicles. The company is still experiencing problems, as more than 10 million vehicles have been recalled world-wide over the past year.
Toyota has yet to settle several lawsuits involving injuries and deaths caused by unintended sudden acceleration in the company's vehicles.