Toyota settles class-action suit for $1.1 billion

On top of federal fines totaling more than $66 million over of unintended acceleration in its vehicles, Toyota Motors has also agreed to pay $1.1 billion to settle a class-action suit by car owners who claimed economic loss because of the gas pedal problem. The Japanese carmaker also agreed to install a brake-override system in cars where acceleration pedals got stuck in floor mats, according to news reports of the settlement. And Toyota will set up a $250 million fund to be paid to former Toyota owners who sold their autos at reduced values because of their bad publicity over the vehicles. It is estimated that roughly 16 million current owners will be eligible for a warranty plan over the next three to 10 years being provided by Toyota on parts linked to unintended acceleration. What the settlement does not cover is possible product liability or personal injury lawsuits. Learn more about product liability lawsuits …