Judge Approves Toyota’s $1.63 Billion Economic Loss Recall Settlement

Although the recalls occurred several years ago, Toyota is still dealing with the aftermath of them in the courts, but at least a portion of the legal proceedings appears to be coming to a conclusion. U.S. District Judge James V. Selna signed off on Toyota’s $1.63 billion offer to settle with all owners that brought economic loss claims against Toyota for damage to the resale value of their vehicles due to the recalls.

The breakdown of the total includes $757 million in cash, $227 million in attorney’s fees and costs, $875 million in non-monetary benefits, which include installation of a brake-override system in eligible vehicles. Individual payments to owners range from $9.74 to $10,000.

However, this settlement does not cover the personal injury and wrongful death lawsuits related to the recalls, which are still ongoing, with a trial scheduled for this month on the claims of the son and widower of a 66 year-old woman who died when her 2009 Toyota Camry crashed into a tree, allegedly due to unintended acceleration.

The recalls affected millions of Toyota and Lexus vehicles from the 2005-2010 model year, and involved both incorrectly-placed all-weather floormats that could impede throttle and brake pedal operation, as well as a separate recall against an accelerator pedal supplier.

Source: Bloomberg