lawsuit –

Toyota received a pretty big blow this past weekend, as the Department of Transportation and the National Highway Traffic Safety Association announced that they will issue a fine of $16.4 million to the Japanese carmaker.

According to new reports, seeing as how it isn’t “that” big a fine, at least in comparison to the profits the company is seeing lately, it will be paid in full. There’s still a pretty big drawback, as Automotive News reports it might help the cause of the those who are engaged in lawsuits against Toyota.

“It certainly bolsters our cases. It demonstrates Toyota has been less than forthright with the U.S. government and with consumers,” said Robert Nelson, a lawyer at Lieff Cabraser Heimann & Bernstein LLP in San Francisco. He currently represents over 20 Toyota customers who are engaged in legal battle with the Japanese company over the unintended acceleration scandal.

On the other hand, other legal representatives are saying it might not help their cause at all, as it can be used by Toyota to show that government inquiries never found anything mechanically wrong with its vehicles.

In case you don’t remember, Toyota has two weeks to pay the fine, or attack the decision, thus taking the case to court. Until then, the pending lawsuits should continue like before.


Post tags: Tags: fine, lawsuit, nhtsa, Toyota, unintended acceleration

Toyota has just added a new lawsuit to its ever increasing collection, as a group of lawyers are taking the Japanese carmaker to court in the name of all the shareholders who experienced grave losses after the unintended acceleration recalls were issued.

To put things in perspective, on the day Toyota issued the two recalls, covering around 8.5 million vehicles, its stock price was $90.42. Last Friday, each share was now worth $79.56, meaning a fall of 12%, or a loss of $15 billion. As you can imagine, such a drop didn’t go well with shareholders.

The suit charges Toyota with issuing “materially false and misleading statements” about the operation of the company and for failing to “disclose ongoing safety issues and quality control problems with Toyota’s automobiles, especially the fact that accelerator pedals installed in many of Toyota’s cars were defective and could become stuck in the depressed position, leading to unintended acceleration.”

Toyota hasn’t issued any statement regarding the suit, as it is a pending investigation. The Japanese carmaker will need to endure through this case, as it could take a while before all of the evidence is investigated, and because proving prior knowledge among the executives is extremely difficult, according to an expert cited by the Detroit News.

Other lawsuits are already filed against Toyota for a variety of causes. From people seeking retribution because of the unsafe nature the recalled vehicles, to those who want the carmaker to investigate any and all vehicles which experienced even just one case of unintended acceleration.

With all these cases pending, Toyota’s legal department is going to be extremely busy in the next few months/years.


Post tags: Tags: lawsuit, Toyota, unintended acceleration

With Toyota issuing some huge recalls these days, it was just a matter time before politicians and lawyers would show up to the “party” and start defending the average consumer which bought cars from the Japanese company.

As such, the USA House of Representatives’ Energy and Commerce committee will hold a hearing on February 25th, where executives from Toyota will be answering questions regarding “the persistent consumer complaints of sudden unintended acceleration in vehicles manufactured by Toyota Motor Corporation,” according to Henry Waxman, the committee chairman.

Not only will representatives be forced to attend such a hearing, but it seems Toyota’s legal department will also have some explaining to do, as two law firms, Parker Waichman Alonso and the Becnel Law Firm, have filed a class action lawsuit against the Japanese carmaker over the huge recalls it has made.

According to representatives from the two companies, all Toyota drivers which bought cars from 2005 to 2010, have “lost the use of their vehicles, and sustained, among things, economic losses and severe emotional distress.” As such, Toyota, besides fixing the vehicles in question during the recall, needs to pay “compensatory, punitive and exemplary damages for the Class, as well as equitable and declaratory relief.”

Toyota still has a lot of things to take care of these days so it’s still too early to tell where these new actions will lead. What do you think? Will Toyota escape this legal and political problem?


Post tags: Tags: lawsuit, politics, Recalls, Toyota

Ford and ROUSH are currently involved in a lawsuit filed by Drew Conner, a New York customer and other buyers, which feel like they’ve been cheated by the two companies. Last year, these customers paid $59,000 for the 2007 Roush Stage 3 BlackJack, which was announced in a limited run of 100 units. However, it looks like the limited tun was not so limited after all, because Ford and ROUSH are accused of building another 100 units, this year. And they’re really serious, seeking more than $12 million in damages.

“The vehicles purchased by the plaintiff and the other class members were not as unique or rare as the defendants had stated them to be,” the complaint said. “Their value from scarcity and as collectors’ items were and are dramatically less than the buyers had been led to believe their value would be.”

Post tags: Tags: blackjack, Ford, ford-mustang, lawsuit, mustang, roush, Tuning