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: July 22

costello

A look back at the Hollywood headlines that went down in history.

in Entertainment

‘Iron Man’ Robert Downey Jr. Hollywood’s highest-paid actor

robert

The 49-year-old star is the highest-paid actor for the second consecutive year, raking in an estimated $75 million.

in Music

Man gets probation in Taylor Swift trespassing

taylorswift

A Massachusetts man has been ordered to stay away from the singer after being convicted of trespassing.

in Entertainment

Neil Patrick Harris lands ‘American Horror Story’ spinoff role

neilpatrickharris

The "How I Met Your Mother" actor wants to guest star in the upcoming spinoff, "Freak Show."

in Trending, Viral Videos

TODAY’S MUST SEE: Queen’s guards play ‘Thrones’ theme

queens

During the changing of the royal guards at Buckingham Palace the crowd is surprised with a little musical entertainment.