Toyota Motor Corporation is one of the most well-known automotive brands in the world. Despite their strong reputation for safety, the company has found itself in legal hot water many times over the years. One of the largest legal settlements Toyota agreed to was in relation to a 2010 lawsuit filed by consumers who experienced dangerous acceleration while driving a Toyota vehicle. I’ll tell you more about the case below, and discuss when a product recall attorney in Northern New Jersey may be able to help if you experience an issue with a Toyota vehicle.
2010 Lawsuit Results in Huge Settlement
In 2010, consumers filed numerous complaints against Toyota Motor Corp., alleging that their automobiles were accelerating suddenly and causing accidents and injuries. The company eventually agreed on a $1.1 billion settlement toward the class-action lawsuit, which resulted from problems with its floor mats. Toyota was required to make cash payments for the loss of value on these vehicles on up to 3.2 million cars.
Since then, more than 8 million vehicles in the US have been recalled for problems related to floor mats with the potential to become entangled with accelerator pedals, or pedals that could stick with the throttle open and cause serious injuries or accidents.
The issue resulted in several individual personal-injury and wrongful death lawsuits being filed against Toyota. The company also faced accusations of unfair business practice in a case brought by the attorneys general of 28 states. At the time, it was one of the largest settlements of its type in automotive history.
As part of the settlement, Toyota agreed to create a $250 million fund to pay out claims related to the acceleration recall. They also agreed to install new braking systems on any vehicles that could become stuck or trapped in floor mats. Additionally, they created a customer support program for Toyota owners allowing them to receive free repairs on related parts for up to a decade. Finally, the company agreed to donate $30 million to automotive safety research related to the issues around unintended acceleration.
Lawsuit Severely Diminished Toyota’s Reputation
Even once it was settled, the lawsuit continued to cause problems for Toyota. The company was known for its quality, safety and reliability. In an effort to maintain that reputation, it is possible that the large settlement was a tactic used by Toyota, allowing them to quickly overcome the scandal and get out of the news. Toyota’s chief legal officer noted that the agreement, while incredibly costly, was “a significant step forward” for the company, as it would allow them to return to focusing on making quality vehicles.
What to Do if you are Injured by a Vehicle Defect
Manufacturing defects are a common cause of fatal vehicle accidents. While class action lawsuits sometimes provide victims with a feeling that they have participated in delivering justice to consumers, in many cases these problems cause severe injuries and even death. In these cases, individual lawsuits may be justified, as well as mass tort lawsuits, which can bring higher compensation than class action lawsuits.
If you have been harmed by a manufacturer’s negligent practices, get in touch with a Northern New Jersey product recall attorney at Buttafuoco & Associates for help. We may be able to maximize your compensation.
Call 1-800-NOW-HURT for a free consultation today.
