Objectors to Toyota Unintended Acceleration Settlement Reach Deal

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Two objectors to a $1.1 billion class action settlement approved last summer over economic loss claims related to the unintended acceleration of Toyota vehicles have dropped their opposition in exchange for a contribution of $1.5 million to auto safety groups.

Objectors Allen Roger Snyder and Linton Stone Weeks argued before the Ninth Circuit Court of Appeals that the cy pres portion of the class action settlement was inappropriate because the $15 million earmarked for driver education marketing campaigns supported Toyota’s assertion that driver error was to blame for the vehicle problems.

The new class action settlement agreement will provide $750,000 to the Automotive Safety Research Institute and another $750,000 to the Center for Advanced Life Cycle Engineering at the University of Maryland. These organizations will conduct research of electronic and computer use and reliability in vehicles and vehicle safety systems, and will provide research reports to the class counsel after the research program is complete. After these changes to the Toyota unintended acceleration settlement were agreed upon, Snyder and Weeks agreed to withdraw their opposition. The payments will be made from attorneys’ fees received by five plaintiffs’ counsel firms.

U.S. District Judge James Selna gave final approval to the Toyota Economic Loss settlement in July 2013. Under the terms of the class action settlement, Toyota agreed to pay $250 million into a fund for distribution to eligible Class Members and to install a brake override system at no charge to Class Members who currently own or lease eligible subject vehicles. Toyota also agreed to pay $250 million into a fund for eligible current owners and lessees of subject vehicles in lieu of the brake override system installation. Toyota also agreed to implement a Customer Support Program to provide coverage for certain repairs and adjustments at no cost to the consumer. The settlement agreement also required Toyota to pay $30 million for automotive safety research related to driver behavior and unintended acceleration.

More than 22 million potential Class Members have been notified about the Toyota Economic Loss settlement. Affected vehicles include 1998-2010 Toyota, Lexus and Scion models sold in the United States. This class action settlement only involves economic damages. In December, Toyota began settlement negotiations with plaintiffs in personal injury and wrongful death lawsuits related to unintended acceleration claims.

The deadline to file a claim for the Toyota EL settlement was July 29, 2013. If you missed out, sign up for our free weekly e-newsletter to receive updates on new class action lawsuits and settlements. You can also check out which settlements are still accepting claims in our Open Class Action Settlements section.

The plaintiffs are represented by Steve W. Berman, Lisa M. Hasselman, Elaine T. Byszewski, Robert B. Carey, Lee M. Gordon and Barbara M. Mahoney of Hagens Berman Sobol Shapiro LLP, Frank M. Pitre, Aron K. Liang, Nancy Leavitt Fineman and Joseph W. Cotchett of Cotchett Pitre & McCarthy LLP and Marc M. Seltzer, William R.H. Merrill, Robert S. Safi, Rachel S. Black and Steven G. Sklaver of Susman Godfrey LLP, among others.

The Toyota Economic Loss Class Action Lawsuit is In re: Toyota Motor Corp. Unintended Acceleration Marketing, Sales Practices and Products Liability Litigation, Case No. 8:10-ml-02151, in the U.S. District Court for the Central District of California.