Toyota pays over 1bn$ in one of the largest legal settlement







toyotaIn one of the largest settlement ever in American legal history, a Californian court approved Toyota’s offer of $1.1bn (£683m) to settle claims that its cars could unintentionally accelerate out of control. One of the owners who dragged the car giant to court demanding explanation and relief  on the basis that there was an electronic fault in the acceleration system.

The deal includes payments to customers as well as installation of a brake override system that  prevents unintentional acceleration in about 3.25m vehicles. “This was a difficult decision, especially since reliable scientific evidence and multiple independent evaluations have confirmed the safety of Toyota’s electronic throttle control systems,” Christopher Reynolds, general counsel for Toyota Motor Sales, USA, said in a statement.

More than 14m vehicles have been quoted to be affected of the fault. The fault which has proved to be quite heavy on Toyota includes payments to customers as well as installation of a brake override system that prevents unintentional acceleration in about 3.25m vehicles.

According to a memo filed in court by the plaintiff’s lawyer, the settlement is “a landmark, if not a record, settlement in automobile defect class action litigation in the United States.”

Shalini Singh,
Gujarat National Law University,
Gandhinagar, Gujarat

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