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)

Recent Headlines

in Entertainment

Today in entertainment history: Sept. 4

Comedian Joan Rivers arrives for the premiere of the documentary "Joan Rivers - A Piece Of Work" during the 2010 Sundance Film Festival in Park City, Utah January 25, 2010.

A walk down Hollywood's memory lane.

in Music

WATCH: Justin Bieber and Questlove drum battle

16-overlay6

Justin Bieber and The Root's Questlove have a drum-off on "Late Night with Jimmy Fallon."

in Entertainment

Chris Evans makes ‘Marvel’-ous directoral debut

17-overlay6

The "Before We Go" director talks about pulling his film together and how being in the Marvel world makes it easier to get movies off the ground.