News

Toyota to pay $1.2B in acceleration settlement

Toyota to pay $1.2B in acceleration settlement

SETTLEMENT: Toyota admitted it misled American consumers by concealing and making deceptive statements about two safety issues, each of which caused a type of unintended acceleration, the Justice Department said. Photo: Reuters

(Reuters) – Toyota Motor Corp will pay $1.2 billion to resolve a criminal probe into its handling of consumer complaints over safety issues, the U.S. Justice Department said on Wednesday.

Toyota admitted it misled American consumers by concealing and making deceptive statements about two safety issues, each of which caused a type of unintended acceleration, the Justice Department said.

The settlement resolves a four-year investigation by U.S. authorities.

Toyota faces hundreds of lawsuits over acceleration problems that gained public attention after the deaths of a California highway patrolman and his family, which were reportedly caused by the unintended acceleration of his Toyota-made Lexus.

The faulty acceleration prompted Toyota to recall millions of vehicles, beginning in 2009.

Last year, Toyota received approval on a settlement valued at $1.6 billion to resolve claims from Toyota owners that the value of their cars dropped after the problems came to light. It is also negotiating with hundreds of customers who said they had been injured.

“Toyota has cooperated with the U.S. attorney’s office in this matter for more than four years,” Toyota spokeswoman Carly Schaffner said on Wednesday. “During that time, we have made fundamental changes to become a more responsive and customer-focused organization, and we are committed to continued improvements.”

(Reporting by David Ingram and Aruna Viswanatha in Washington; Nate Raymond and Ben Klayman in New York; Editing by Doina Chiacu)

Latest Headlines

in Trending, Viral Videos

TODAY’S MUST SEE: Reporter confronts woman accused of stealing his identity

Fresh
14-overlay19

An accused credit card thief picked the wrong guy when she used a credit card number belonging to Texas consumer affairs reporter Steve Noviello.

in Local

Ex-Maine Congressman is Obama Pick for Administration Post

mike_michaud

President Obama has tapped a former Maine congressman for an administration post to help veterans seeking training and jobs.

in Local

Ex-President George H.W. Bush Tweets About his Spill

US-POLITICS-MUSEUM-HISTORY

Former President George H.W. Bush is showing he has a sense of humor about a spill that fractured a bone in his neck.

in Local

Maine House Speaker Sues Governor Over Loss of School Job

governorlepage

Maine's Democratic House Speaker has sued Republican Gov. Paul LePage after the governor threatened to withhold funds from a school for at-risk youth to get him removed from the top job there.

in Local

Actress Valerie Harper Hospitalized in Maine

20251-valerie-harper

The Ogunquit Playhouse says actress Valerie Harper has been hospitalized after falling ill before a performance.

Tweets

  • 13h
  • 14h
  • 14h
  • 14h
  • 14h
  • 15h
  • 15h