Under the agreement, Toyota (TM) will also install a brake-override system in cars where acceleration pedals got stuck in floor mats, leading them to accelerate unintentionally.
The company will also set up a fund of $250 million to be paid to former Toyota owners who sold their cars between Sept. 1, 2009, and Dec. 31, 2010, to compensate the owners for the reduced value of the cars from the negative publicity.
A statement from the attorneys representing Toyota owners said that a separate fund of $250 million will be established to compensate current owners whose vehicles are not eligible for a brake-override system.
About 16 million current owners will be eligible for a customer care plan, that will provide a warranty on certain parts tied to unintended acceleration for between three and 10 years.
[Read more about Toyota’s Billion Dollar Suit Here]