Toyota Agrees to Pay $1.1 BILLION in Gas-Pedal Class-Action Lawsuit Settlement

Toyota Motor Corp. 7203.TO +2.61% agreed to pay about $1.1 billion to settle a class-action lawsuit stemming from complaints of unintended acceleration in its vehicles that soured its reputation for quality and undermined its sales globally.

The settlement, filed in a federal court in California on Wednesday, will result in a $1.1 billion pretax charge to earnings this quarter, Toyota said. Owners of some 16 million Toyota, Lexus and Scion vehicles would be eligible for payments and safety updates that would vary depending on their vehicle and its age.

The settlement includes no admission of fault or unlawful conduct by Toyota and allows the company to avoid the risks associated with battling a lengthy trial. "One of our overriding goals has been to vigorously defend the safety of our vehicles, and we believe we have done that," said Mike Michels, a Toyota spokesman.
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Agent009 - 12/27/2012 3:12:01 PM

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Makes you wonder if it was worth it all in the long run?

HughJass - 12/28/2012 5:24:42 PM

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Where do I cash in? A Toyota drove by me the other day. I'm an American, therefore I'm entitled to something for nothing because working for stuff is for chumps.

quizz - 12/28/2012 6:27:08 PM

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Attorneys get $5 million per attorney and consumers get $50 per Toyota owner. So as a member of the "class" you get no more than $50, alas it's the attorneys who really cash in, the consumers get near nothing plus "free" safety updates, and the balance of the payments are divided by 16 million owners ... let's see if you take off $300 million off for repairs, you're left with $800 million divided by 16 million people, or $50 per person.

Attorneys get $200 million to split among 10 law firms (about 50 attorneys total), so that comes to $4 million per attorney. Not bad, not bad at all. By the way, those attorneys really did work hard, it's just that when Joe Plumber works hard he gets a few hundred thousand after 5 years and the attorney gets $4 million.

HughJass - 12/29/2012 4:48:46 PM

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That's why lawyers are always looking for stupid people trying to make an easy buck. The only people making easy money are the dirtbag lawyers. Serves the "someone else's fault" crowd nicely. Maybe they can throw a lawsuit against society next.