Japanese automaker Toyota Motors has agreed to pay its vehicle owners $1.6bn to settle a lawsuit over sudden unintended acceleration (SUA) reports in 2009 and 2010, which allegedly caused their vehicles to lose value.
The settlement, which includes $757m in cash, together with $227m in attorneys' fees, and $875m in non-monetary advantages, resolves loss allegations by Toyota customers who had sold their vehicles at a loss through resale and trade-ins.
According to the US Central District of California Judge James Selna, the company would pay between $125 and $10,000, based on the level of loss for each owner of over 10 million recalled vehicles globally.
The New York Times cited Toyota Motor Sales national business and field communications manager Celeste Migliore as saying: "This agreement allows us to resolve a legacy legal issue in a way that provides significant value to our customers and demonstrates that they can depend on Toyota to stand behind our vehicles."
As part of the settlement, Toyota will pay about $250m to eligible customers who had sold their vehicles between September 2009 and December 2010, while it will also introduce a $250m scheme for 16 million existing customers to increase warranty coverage for certain vehicle components.
Additionally, the Japanese automaker will also retrofit about 3.2 million vehicles with a brake override system, which would ensure that the vehicle will stop upon applying brakes, even in case of depressed accelerator pedal.
Toyota has to pay about $30m for automotive safety research on involuntary acceleration and driver behaviour.
The current settlement does not cover individual personal-injury and wrongful death lawsuits, which are still pending.
