Toyota reaches USD 1bln deal to settle cases over 'acceleration problems' in vehicles
Japanese automaker Toyota has said that the firm has reached a settlement worth over 1 billion dollars in a case involving hundreds of lawsuits over acceleration problems in its vehicles.
The company said in a statement that the deal would resolve cases involving motorists who complained that the value of their vehicles was adversely affected by previous recalls stemming from sudden acceleration problems.
Lawyer Steve Berman, a plaintiffs' attorney, described it as the largest settlement in U.S. history involving automobile defects, CBS News reports.
According to the report, as part of the settlement, Toyota said it will offer cash payments to eligible customers who sold or turned in their leased vehicles between September 2009 and December 2010.
The Japanese automaker also will launch a program to provide supplemental warranty coverage for certain vehicle components.
It will retrofit additional non-hybrid vehicle models that are subject to a floor mat recall with a free brake override system, the report said.
The settlement would also establish additional driver education programs and fund new research into advanced safety technologies, it added.