Toyota faces potential $1.2B federal settlement over unintended acceleration

March 19, 2014
Toyota is allegedly nearing a federal settlement over its handling of the unintended-acceleration recalls several years ago.

The deal has yet to be publicly acknowledged, however two unnamed insiders have told Bloomberg the company has agreed to pay $1.2 billion to put an end to the ongoing investigation.

If true, the automaker will pay a large sum to the federal government despite winning a bellwether civil trial filed by the estate of a driver who was killed in a 2006 Toyota Camry that lacked a brake override system.

Millions of vehicles were recalled, beginning in 2009, after accidents and fatalities were blamed on unintended acceleration. The issue was traced back to the gas pedal, rather than an electronic default. Toyota vehicles are now designed with a redundant override that automatically reduces engine power when a driver hits the brakes.

The federal penalty is reportedly marginally higher than a $1.1 billion civil settlement that the company agreed to pay late in 2012 in a class-action lawsuit.

The latest settlement is expected to be finalized and announced as early as today.

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