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Toyota's $1.2 Billion Settlement - Who Gets the Money?

Photo by Mioarseralyain
Toyota Motor Corp agreed to pay mind blowing $1.2 Billion (US) to settle a criminal probe stemming from unintended acceleration case.

The historic settlement between the Justice Department and Toyota includes an admission by Toyota that it misled American consumers about two different problems that caused cars to accelerate even as drivers tried to slow them down.

The deal with Toyota was led by the U.S. Attorney's office in Manhattan, the same prosecutors investigating GM's handling of its ignition-switch recall. GM also faces probes by Congress and safety regulators at the National Highway Traffic Safety Administration, as well as at least three proposed class-action lawsuits related to economic losses suffered by consumers.

This suit only addresses the perceived loss-of-value that Toyota owners and lessees feel they have suffered, alleging their cars were the victims of unintended depreciation even if they did not directly suffer from the alleged cases of unintended/sudden acceleration. 

So how is $1.2 billion gets distributed?

Less than half of it, estimated at $500 million will be spent to benefit former and current Toyota owners in one way or another.  It will take a form of direct payments to those who sold their Toyota vehicles at perceived lost value, and compensation for those former owners whose vehicles are not eligible for the free brake override system.

Surprisingly, about $30 million will go to Universities and research centers that specifically safety technology and "critical gaps in awareness and practice regarding defensive driving skills".

Guess who gets another big chunk of the billion dollar plus settlement?  Whenever there is a settlement, it's followed by a big payment to the lawyers.  In this case, about $200 million will be going to 85 attorneys at 25 law firms with additional $27 million for their expenses.

Industry experts and insiders think this is a big win for Toyota despite of the amount it has to pay.  The company was declared the world's largest auto maker for two years in a row.

Toyota's $1.2 Billion Settlement - Who Gets the Money? Reviewed by Brandon on 2:58 PM Rating: 5

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