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January 29, 2013 / Scott Tillett

Toyota to Pay $1.1 Billion in Gas Pedal Settlement

Another chapter in the Toyota unintended acceleration cases appears to be coming to an end as the parties to a lawsuit by consumers against the automotive giant reach a settlement agreement for $1.1 billion.  In 2009 and 2010, problems with unintended acceleration forced Toyota to recall more than 8 million cars in the U.S.  The car manufacturer replaced floor mats and accelerator pedals to address the issue.

The class action lawsuit, lead by plaintiff Seong Bae Choi against Toyota Motor Corp., alleged that Toyota designed, manufactured, distributed, advertised, and sold automobiles containing an alleged defect that would allow sudden unintended acceleration of the vehicle, resulting in economic damages to consumers.

The settlement agreement calls for cash payments to persons who sold or traded in certain Toyota vehicles from September 1, 2009 to December 31, 2010, returned certain leased Toyota models before the lease termination date during the period from September 1, 2009 to December 31, 2010, or insured and/or made insurance payments or declared a vehicle a total loss as the result of an unintended acceleration during the period from September 1, 2009 to December 31, 2010.  The settlement agreement also has provisions for a Customer Support Program, in which Toyota will offer prospective coverage for repairs and adjustments needed to correct defects in materials or workmanship in engine control modules, cruise control switches, accelerator pedal assemblies, stop lamp switches, and throttle body assemblies.

If this settlement is approved by the California District Court, it will be one of the largest automotive industry settlements on record.

Have you been the victim of a dangerous product?  If so, please call Khorrami, LLP for a confidential consultation.


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