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)

Recent Headlines

in Entertainment

Reese Witherspoon launches lifestyle website with grandma’s coconut cake

Fresh
reesewitherspoon

The actress' DraperJames.com venture opened for business on Tuesday.

in Entertainment, Viral Videos

WATCH: ‘Harry Caray’ visits David Letterman

Fresh
11-overlay

Will Ferrell brings back his infamous "SNL" impression of the beloved Chicago Cubs broadcaster.

in Trending, Viral Videos

TODAY’S MUST SEE: Jimmy Fallon & Jack Black remake ‘More Than Words’

Fresh
23-overlay1

The 1990 ballad by Extreme gets a shot-by-shot tribute and it's scarily accurate.

in Entertainment

Today in entertainment history: May 6

WhitneyHouston

A look at some of the entertainment headlines that made history.

in Lifestyle, National

Macy’s test stores to offer deals at ‘Backstage’ prices

macys

The retailer will open the first of four "discount" stores this fall in NYC.