LOS ANGELES — A judge yesterday gave preliminary approval to a $1.2 billion settlement involving sudden acceleration by Toyota vehicles, a plaintiff attorney said.
The deal resolves hundreds of lawsuits from motorists whose cars and trucks plummeted in value following recalls stemming from acceleration claims.
US District Judge James Selna’s go-ahead means that current and former Toyota owners included in the settlement will get notices slated to be mailed in early March. Settlement information will also be published in newspapers nationwide.
Selna is to hold a fairness hearing June 13 to consider granting final approval.
Numerous cases filed since 2009 were consolidated and divided into two categories: economic loss and wrongful death.
Claims seeking compensation for injury or death due to vehicles’ sudden acceleration are not part of the settlement. The first trial involving those suits is scheduled for February.
Toyota — which has recalled more than 14 million vehicles worldwide due to the problem in several models and brake defects in the Prius hybrid — said it plans to take a one-time $1.1 billion pretax charge against earnings to cover the settlements’ estimated cost.
The plaintiff attorney, Steve Berman, put the value of the deal at $1.2 billion to $1.4 billion.