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 Entertainment

Coming soon: The Mustache Hall of Fame

burtreynolds

There are halls of fame for everything from baseball to rock 'n' roll, so why not those with a hairy upper lip?

in Music

This week’s top alternative tracks

blackkeys

LISTEN: This week's top alternative songs, according to the weekly Billboard chart.

in Black Friday, Lifestyle, National

Walmart ups ante on holiday shopping

walmart

Starting Saturday, Walmart will do whatever it takes to rope in holiday shoppers however they want to buy.

in Entertainment

Inspiration for ‘Harry Potter’ nemesis revealed

harrypotter

J.K. Rowling says the much-hated character Dolores Umbridge is based on a teacher to whom she took an instant dislike.

in Lifestyle

App turns your smartphone into a breathalyzer

beer

Alcohoot turns your smartphone into a portable, personal breathalyzer.