Toyota Agrees To $29 Million Settlement For Gas Pedal Problem

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(WHNT) – Toyota Motor Company has agreed to pay $29 million in a multi-state lawsuit over allegations Toyota concealed safety issues related to unintended acceleration.

Thirty states filed lawsuits against Toyota, including Alabama. Toyota agreed to pay $29 million to settle claims filed by consumers, and also agreed to provide additional restitution and incentives to Toyota owners to promote compliance with unintended acceleration safety recalls.

“Resolving this inquiry is another step we are taking to turn the page on legacy issues from Toyota’s past recalls in a way that benefits our customers,” said Christopher P. Reynolds, group vice president and general counsel for Toyota Motor Sales, U.S.A. and chief legal officer, Toyota Motor North America.  “Immediately after this inquiry was launched in 2010, Toyota began cooperating fully with the Attorneys General and implementing ‘customer-first’ initiatives to address their concerns and those of our customers.  Today, we are pleased to have reached a cooperative agreement that reflects the commitment of Toyota’s 37,000 North American team members to put customers first in everything we do.”

Read Toyota’s full statement here.

Alabama Attorney General Luther Strange said Alabama will receive $641,995 as its part of the settlement.

“I am pleased that this settlement will protect consumers by requiring honest and effective disclosures of safety issues,” said Attorney General Strange.

In addition, the settlement provides that Toyota is:

  • Prohibited from reselling a vehicle it reacquired with alleged safety defects without informing the purchaser about the alleged defect(s) and certifying that the reacquired vehicle has been fixed
  • Prohibited from misrepresenting the purpose of an inspection or repair when directing consumers to bring their vehicles to a dealer for inspection or repair.
  • Required to exclude from the “Toyota Certified Used Vehicles” or “Lexus Certified Pre-Owned Vehicles” categories any vehicle acquired through lemon law proceedings or voluntarily repurchased by Toyota to ensure customer satisfaction.

The New Jersey Attorney General’s Office led the national multi-state investigation along with the Attorneys General from Connecticut, Florida, Louisiana, Michigan, Nevada, Ohio, South Carolina and Washington. The following states and U.S. territory participated in today’s settlement:  Alabama, American Samoa, Arizona, Arkansas, Colorado, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin.

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