Why everyone loses but the lawyers in Toyota’s unintended acceleration settlement

Why everyone loses but the lawyers in Toyota’s unintended acceleration settlement

January 1, 2013 by · Leave a Comment 

Filed under: Government/Legal , Safety , Toyota , Earnings/Financials The Toyota settlement recently submitted to US District Judge James Selna for approval will cost the company anywhere from $1 billion to $1.4 billion. All to settle the class-action suit brought against it for economic losses stemming from claims of unintended acceleration . This suit only addresses the perceived loss-of-value that Toyota owners and lessees feel they have suffered, alleging their cars were the victims of unintended depreciation even if they did not directly suffer from the alleged cases of unintended/sudden acceleration. This is a separate case than the wrongful death suits brought about by the unintended acceleration brouhaha. When the settlement was announced, this was the overview of its payouts: Toyota will install brake override systems in all 3.25 million vehicles subjected to the floor mat entrapment recall . Another fund of $250 million will compensate current owners whose vehicles are not eligible for the free brake override system. A fund of $250 million will compensate former Toyota owners who sold their cars from September 1, 2009 through December 31, 2010 for lost value. Education grants valued at $30 million will be made to independent academic institutions to further study auto safety and enhance driver education. All 16 million current Toyota owners will be eligible for a customer care plan that warrants certain parts allegedly related to unintended acceleration for three to 10 years. Car and Driver attempts to break down where all that largesse is going, and who’s going to get large off of it.

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