Toyota Motor Corp. will spend $1.1 billion to settle a two-year-old class-action lawsuit by millions of owners of the manufacturer's cars who said their vehicles suddenly and unintentionally accelerated, the company said on Wednesday.
Filed via federal court in Santa Ana, Calif., the agreement represents one of the biggest product-liability settlements in history. If approved by the federal court, the Japan-based auto giant will compensate current and former car owners with cash payments for loss of value on their faulty vehicles. Toyota also says it will install special safety systems on 3.2 million vehicles that were recalled due to floor-mat issues.
“This agreement marks a significant step forward for our company,” Christopher Reynolds, Toyota’s chief United States legal officer, said in a statement. “In keeping with our core principles, we have structured this agreement in ways that work to put our customers first.”