Toyota Motor Corporation won final approval of a settlement for the class-action lawsuit over acceleration issues that led to the recall of more than 11 million Toyota vehicles. A federal judge in California formally approved the settlement last Friday summing up to $1.6 billion. The lawsuit claims that Toyota vehicle owners suffered losses when they sold or traded their vehicles in 2009 to 2010 due to the reports of sudden, unintended acceleration.

Over 500,000 Toyota owners are expected to file a claim where each will receive an amount of $125 to $10,000 depending on the level of depreciation. Priority will be given to the owners who already filed a claim while executives will provide payouts to owners who do not file claims. Moreover, the owners will also receive brake-override systems for their car that is estimated to be at $406 million, and another $250 million for owners who are ineligible for the said brake system.

The settlement however does not cover individual injury and wrongful death lawsuits, and is still pending against Toyota.

SOURCE: CBS Los Angeles, United Press International