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

This weekend in entertainment history

In this film publicity image released by 20th Century Fox, the character Neytiri, voiced by Zoe Saldana, left, and the character Jake, voiced by Sam Worthington are shown in a scene from, "Avatar." The film was nominated Tuesday, Feb. 2, 2010 for an Oscar for best picture. The 82nd Academy Awards will be presented on March 7.

A look back on some of Hollywood's most notable headlines.

in Entertainment

If regular people picked the Oscars, ‘American Sniper’ would win

In this image released by Warner Bros. Pictures, Kyle Gallner, left, and Bradley Cooper appear in a scene from "American Sniper."

If ordinary Americans voted for the Academy Awards, the portrait of a sharpshooter in the Iraq war, would be the best picture winner.

in Music

This week’s top country tracks

bradpaisley

LISTEN: This week's top country tracks, according to the latest Billboard chart.

in Viral Videos

Elders play Grand Theft Auto V

20-overlay2

They have no problem shooting people, but they refuse to run a red light!

in Entertainment

Regina Hall almost became a nun

reginahall

The "Think Like a Man" star missed out on becoming a nun because some of her "numbers" were too high.