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Toyota Settles Sudden Acceleration Case After Losing Verdict

Published on: October 25, 2013 at 6:18 PM ET
Melissa Stusinski
Written By Melissa Stusinski
News Writer

Toyota Motor Corporation reached a settlement in a lawsuit regarding unintended acceleration issues. The settlement happened on Friday, one day after a jury found the automaker liable in the suit and ordered it to pay $3 million for defects that caused a fatal crash in 2007.

Jurors reached their verdict in the case against Toyota and were expected to deliberate on Friday whether they should award punitive damages against the car company.

However, Toyota and lawyers for the plaintiffs announced a confidential settlement to resolve the case, reports Reuters . The lawsuit is one of several involving the acceleration issue, which was a software glitch that caused the vehicle to speed out of control, and the first to go to trial.

A spokeswoman for the car company, Carly Schaffner, commented in a statement, “While we strongly disagree with the verdict, we are satisfied that the parties reached a mutually acceptable agreement to settle this case.”

The Los Angeles Times notes that Toyota recalled millions of vehicles to fix the unintended acceleration issue , which the company attributed to gas pedals and floor mats. It also blamed the issue on drivers mixing up the gas and brake pedals.

Still, the automaker settled several acceleration lawsuits outside of court, including a $10 million deal in 2010 involving the survivors of a California Highway patrolman and three family members who were killed when their Lexus ES went out of control in San Diego.

Toyota also agreed to pay $1.6 billion in a class-action case brought by thousands of their customers who alleged that the unintended acceleration problem hurt the value of their cars. The company still faces hundreds of personal injury and wrongful death lawsuits related to the problem. It is unclear if the settlement this week will set a precedent for how juries rule in the suits against the automaker.

TAGGED:toyota
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