Mexican Media Brands
Judge Approves Toyota’s $1.2 Billion Recall Settlement
A federal district judge in New York City has accepted Toyota Motor Corp.'s agreement to settle a corporate fraud probe into the company's attempt to hide safety defects, calling the case one that shows "corporate fraud can kill."
#regulations
Share
A federal district judge in New York City has accepted Toyota Motor Corp.'s agreement to settle a corporate fraud probe into the company's attempt to hide safety defects, calling the case one that shows "corporate fraud can kill."
The $1.2 billion settlement allows Toyota to sidestep U.S. Dept. of Justice charges of wire fraud. But the company admits it deliberately misled consumers, hid facts from safety agencies and lied to Congress about defects that caused its vehicles to accelerate unexpectedly.
The Justice Dept. has agreed not to prosecute Toyota for three years if the company agrees to cooperate with the department. Toyota also has agreed to allow a "rigorous" review of its safety communications procedures by an independent watchdog.
In spite of its efforts to hide its product problems, Toyota ended up recalling some 10 million vehicles in 2009-2010. It also paid $1.6 billion to settle lawsuits from owners who claimed the recalls and related publicity eroded the resale value of their vehicles.
On Monday Toyota said it had reached a preliminary deal for an undisclosed amount to settle 131 personal injury and wrongful death lawsuits linked to the recalls. More than 170 additional cases remain.
RELATED CONTENT
-
Study: How States Should Update Traffic Laws for Autonomous Cars
U.S. states should require that all automated cars have a licensed driver on board, suggests a study by the Governors Highway Safety Assn.
-
Toyota Targets 2021 Launch for V2V Tech in U.S.
Toyota Motor Corp. plans to expand its vehicle-to-vehicle communication technology to the U.S. by 2021 and offer it across most Toyota and Lexus models in the country by mid-decade.
-
Porsche Racing to the Future
Porsche is part of VW Group and it is one of the companies that is involved in putting vehicles on the U.S. market with diesel engines in violation of EPA emissions regulations, specifically model year 2013–2016 Porsche Cayenne Diesel 3.0-liter V6 models.