Blogs

Toyota reaches largest settlement in U.S. history for vehicle defects

Posted by Sarah Showard | Jan 15, 2013 | 0 Comments

Toyotaicon

Toyota Motor Corp. announced in December 2012 that it reached a settlement for more than $1 billion over hundreds of lawsuits from Toyota owners who claimed their vehicle's value dropped severely due to complaints of unintentional acceleration. A lawyer representing the owners told the Associated Press the settlement is the largest in U.S. history for vehicle defects.

The AP reported that the manufacturer will take a $1.1 billion pre-tax charge against earnings to pay the settlement, which is valued between $1.2 billion and $1.4 billion.

The lawsuits were consolidated in a class action case in U.S. District Court in Santa Ana, Calif., and cover a variety of vehicles made from 1998-2010. The Santa Ana cases affected by this settlement are for economic loss. Other cases involving claims of injury or death aren't covered. The first trial regarding injury or death is scheduled for February, according to the AP.

Toyota will offer cash payments to eligible customers who sold vehicles or turned in leased vehicles between September 2009 and December 2012. Toyota also will provide supplemental warranty coverage for some vehicle components for 16 million current owners and retrofit about 3.2 million vehicles with a brake override system.

Although Toyota agreed to settle the lawsuits, the company denies violating any law, engaging in any wrongdoing and that there is any defect in its electronic throttle control systems.

Photo Credit: 13254 on Flickr

Further reading:

About the Author

Sarah Showard

Sarah Showard graduated from the University of Maryland in 1985, Magna Cum Laude with a Bachelor of Arts in English-Linguistics and a Certification in Womens Studies. She then graduated from New York University School of Law in 1988. Sarah began practice initially as an insurance defense attorne...

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

Showard Law Firm-Tucson's Local Law Firm for defective drug & medical device claims.

Showard 20staff 202017 201026 20special 20edit edit.jpg 20small

Showard Law Firm is dedicated to compassionate representation for our clients who have been injured by defective products, dangerous drugs or the negligence of any individual or company. We are experienced in litigation and ready to ensure you receive the maximum possible settlement for your injuries, medical bills, mental anguish and other losses.

Sarah Showard and Dr. Peter Ott - 2018 Heart Ball Chairs

Aha

Sarah and Peter are the proud chairs of this year's Heart and Stroke Ball, held on 2/17/18 at the El Conquistador. With a western theme "Heart of the West", this important fund raiser is in its 60th year, all raising funds to help with research and advances in the case against heart disease in the Tucson community.