A US district judge has granted preliminary approval to Japanese auto maker Toyota Motor's unintended acceleration settlement for over $1bn.
According to court documents, the settlement is valued at over $1.3bn between Toyota and an estimated 19 million current and former Toyota vehicle owners who claim their vehicles contain defects causing sudden, unintended acceleration.
The case was filed in 2010 after drivers throughout the US reported that the automaker's vehicles suddenly and unintentionally accelerated out of their control.
Hagens Berman Sobol Shapiro managing partner and co-lead counsel for Toyota owners and lessees in the case Steve Berman said, "We are eager to move the process forward so we can ultimately distribute funds to Toyota owners as well as install brake-override systems in more than three million vehicles."
As per the terms of the proposed settlement, the automaker will install a brake-override system in vehicles subject to floor mat entrapment recalls, provide a fund of $250m for former Toyota owners who sold their cars between 1 September 2009, and 31 December 2010.
The proposed settlement will also see Toyota provide an additional $250m for its current owners whose vehicles are not eligible for a brake-override system, and offer a customer care plan for all 16 million current owners that will warranty certain parts allegedly tied to unintended acceleration.
The final approval in the case is scheduled on 14 June 2013.
