PTI reported that a US judge gave preliminary approval to a USD 1 billion plus settlement with Toyota Motor Corp in cases involving problems of sudden, unintended acceleration by its vehicles.
Attorney Mr Steve Berman in a statement said that he was pleased District Judge Mr James V. Selna gave swift initial approval.
Toyota said that the deal will resolve hundreds of lawsuits from motorists who said the value of their Toyota vehicles plummeted after recalls stemming from claims that the Japanese automaker’s cars and trucks accelerated unintentionally.
The preliminary approval means current and former Toyota owners included in the settlement will receive information through notices expected to be mailed in early March.
Information about the settlement will also be published in newspapers around the country.
Selna plans to hold a fairness hearing June 13th to consider granting final approval.
Toyota has recalled more than 14 million vehicles worldwide due to acceleration problems in several models and brake defects with the Prius hybrid.
Toyota, which has blamed driver error, faulty floor mats and stuck accelerator pedals for the problems, plans to take a one time, USD 1.1 billion pre tax charge against earnings to cover the estimated costs of the settlement. Mr Berman said the total value of the deal is between USD 1.2 billion and USD 1.4 billion.
Toyota plans to offer cash payments from a pool of about USD 250 million to eligible customers who sold vehicles or turned in leased vehicles between September 2009 and December 2010.