A recent law.com story, “$1.6 Billion Toyota Settlement Win Final Approval,” reports that U.S. District Judge James Selna in Santa Ana, Calif. approved a $1.6 billion settlement between Toyota Motor Corp. and consumers of its vehicles who alleged they suffered economic losses because of the sudden acceleration recalls.  Selna also approved $200 million in attorney fees and $27 million in expenses for 31 plaintiffs’ firms.  The payouts amount to 12.3 percent of the settlement value. 

The Toyota deal aims to resolve claims by consumers that their cars lost value following the highly publicized recalls of nearly 10 million vehicles for floor mat and accelerator pedal defects associated with sudden acceleration.  In particular, the settlement covers class members who own or lease 16 models of Toyota, including the Camry and the Corolla, nine Lexus models and three Scion models.  The model years range from 1998 to 2010.

In June, Selna found the settlement to be “fair, adequate and reasonable” but held off approving it due to concerns about how anticipated excess cash would be allocated.  At issue were two cash funds worth $250 million in each.  One fund would be earmarked for class members whose vehicles lost value due to the recalls, while the other would pay class members whose vehicles are ineligible for installation of a brake override system.

“This settlement is extraordinary in that every single dollar of the class funds will go to class members,” Selna said.  That is not always true in class action settlements, and this case was a “complex undertaking,” he said.

NALFA also reported on this case in “Judge Puts Hold on $200M in Fees in Toyota MDL Settlement.”  For more information on this case visit http://www.toyotaelsettlement.com.