Japanese auto maker Toyota has agreed to spend between $1.2 and $1.4bn to settle various US lawsuits and other claims related to accidental acceleration problem in its vehicles.
As part of the settlement, the company will directly pay to consumers as well as the install a brake-override system in approximately 3.25 million vehicles.
In addition, the settlement also sets up a fund of $250m to be paid to past Toyota owners who sold their vehicles during 01 September 2009 through 31 December 2010 to compensate those owners for an alleged reduced value following the publicity related to unintended acceleration.
The carmaker will also establish a separate fund of $250mto compensate the existing owners whose vehicles are not eligible for a brake-override system.
The original case had been filed in 2010 after drivers across the US started reporting that Toyota vehicles suddenly and unintentionally accelerated, while the settlement also provides that all 16 million current owners will be entitled for a customer care plan.
