Toyota Could Pay $1 Billion-Plus to Settle Federal Probe

Toyota Motor Corp. is close to a $1 billion-plus deal to end a U.S. investigation that it may have made false or incomplete disclosures to federal regulators about defects in its cars related to unintended acceleration claims, according to The Wall Street Journal.

Details about the nature of the probe and the would-be settlement are unclear. The Journal cites unidentified sources who say the U.S Dept. of Justice is looking into possible mail and wire fraud violations.

Toyota said in regulatory filings last year it had received two subpoenas from the Securities and Exchange Commission and federal prosecutors relating to unintended acceleration and unspecified financial records. None of the agencies involved has commented.

In 2009-2010 Toyota recalled some 7.7 million vehicles to fix loose floor mats and sticky accelerator pedals that could prevent the accelerator from returning to the idle position when the pedal is released. But no investigation has found a flaw that would cause Toyota cars to accelerate spontaneously, as many of the company's customers claim.

Toyota agreed last year to pay as much as $1.6 billion including $227 million in attorney's fees to customers who say the resale value of their vehicles was hurt by the floor mat/accelerator pedal recalls. The company also has moved to settled other wrongful death lawsuits blamed on sudden acceleration.

The National Highway Traffic Safety Administration fined Toyota four times in the past three years for a combined $66 million for failing to report safety defects quickly enough.