Toyota to settle suits for defects
$1 billion-plus for plaintiffs in sudden-acceleration cases.
LOS ANGELES — Toyota Motor Corp. said Wednesday it has reached a settlement worth more than $1 billion in a case involving hundreds of lawsuits over acceleration problems in its vehicles.
The company said in a statement that the deal will resolve cases involving motorists who said the value of their vehicles plummeted after a series of recalls by the Japanese automaker stemming from claims of sudden acceleration defects.
Lawyer Steve Berman, a plaintiffs’ attorney, said the settlement is the largest settlement in U.S. history involving automobile defects.
The proposed deal was filed Wednesday and must receive the approval of U.S. District Judge James Selna. He’s expected to review the deal Friday.
Berman said the total value of the deal is between $1.2 billion and $1.4 billion. Toyota said it will take a one-time, $1.1 billion pre-tax charge against earnings to cover the estimated costs.