Toyota Agrees to $29 Million Settlement With State Attorneys General

Settlement reached after Toyota sued over stuck accelerator fiasco.

Toyota Agrees to $29 Million Settlement With State Attorneys General

Posted in News

— Toyota has reached a $29 million settlement agreement with the Attorneys General of 29 states and American Samoa to resolve issues related to recalls from 2005 to 2010.

The attorneys general sued Toyota in 2010 due to the unintended acceleration fiasco. The lawsuit targeted Toyota for failing to notify customers about the problem in a timely manner. 

Toyota said the problems were caused by sticky gas pedals and misplaced floor mats, not by any type of electrical issue. An investigation by the National Highway Traffic Safety Administration and NASA came to the same conclusion.

What the Settlement Means

As part of the settlement, Toyota has agreed to make information more accessible to customers, including posting owners’ manuals online.  Toyota also said it will expand its network of product quality field offices across the U.S. and use rapid-response teams to respond to customer safety concerns.

In the past two months, Toyota has paid a record $17.35 million fine for failing to report a safety defect to the federal government in a timely manner.  Additionally, Toyota agreed to pay $1 billion to settle a class-action lawsuit stemming from stuck accelerator pedal problems.