Toyota has announced it has reached an agreement to settle outstanding lawsuits in the US related to the automakerís previous recalls for unintended acceleration.
In one of the largest lawsuits of its kind, the Japanese automaker will reimburse owners of up to 16-million cars resulting in a one-time, $1.1 billion pre-tax charge against its fourth quarter earnings. Also, under the agreement, Toyota will install a brake-override system in cars where the floor mats got stuck.
In addition, the automaker is setting up a fund of $250 million to be paid to former Toyota owners who sold their vehicles from September 1st, 2009 to December 31st, 2010. A separate fund of $250 million will also be established to compensate current owners whose vehicles are not eligible for the new brake-override system.
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