Toyota Motor Corp. said on Dec. 26 that it would spend $1.1 billion to settle a sweeping class-action lawsuit by owners of millions of vehicles that were recalled for problems with unintended acceleration.
The agreement, filed in federal court in California, was called one of the largest product-liability settlements in history.
If the agreement is approved by the court, Toyota would compensate current and former owners for loss of value on vehicles recalled because of faulty floor mats and other conditions that could cause sudden acceleration.
Toyota has also agreed to install special safety systems on 3.2 million vehicles that were recalled for floor-mat problems.
The class-action suit was filed in 2010 after widespread complaints were made to federal safety regulators about Toyota models that accelerated unexpectedly.