A recent NLJ story, “Judge: Massive Toyota Settlement Needs to Cook Longer,” reports that U.S. District Judge James Selna in Santa Ana, Calif. put a hold on the proposed $1.6 billion settlement between Toyota and consumers asserting economic damages tied to sudden acceleration defects.  The judge concluded in a tentative order that the deal was “fair, adequate, and reasonable,” but said that “certain difficulties in the plan of allocation of the settlement funds precluded the Court’s final approval of the proposed settlement at this time.”

He also denied the plaintiffs’ steering committee’s proposed $200 million in attorney fees and $27 million in expenses for 31 law firms.  The payouts, amounting to 12.3 percent of the settlement value, appeared to be “fair, reasonable, and adequate,” he wrote.  But he declined to complete his analysis until the proposed settlement is approved.  “By any measure, the results achieved by class counsel are exceptional,” he wrote.  Selna notes that Toyota, under the settlement agreement, has agreed to pay plaintiffs’ class counsel separately from the settlement funds.

The settlement aims to resolve claims that certain Toyota vehicles lost value due to recalls.  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.

The settlement carries a total estimated value of $1.63 billion, according to plaintiffs’ attorneys.  Among its provision are two cash funds worth $250 million 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.

NALFA also reported on this case in "Fee Objectors Gripe About $200M Fee Request in Toyota Settlement."  The case is In Re Toyota Motor Corp. Unintended Acceleration Marketing, Sales Practices, and Products Liability Litigation.  For more on this case, visit http://www.toyotaelsettlement.com.