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 Sports

This week’s top sports shots

AP564917773040_12

A look at some of the biggest plays and best photos in sports this week.

in Sports

This weekend’s sports schedule

playball

A look at some of this weekend's biggest sporting events.

in Music

Ozzy Osbourne to undergo surgery

British musicians Ozzy Osbourne of Black Sabbath, arrives at the Classic Rock Roll of Honour awards 2013 at the Camden Roundhouse in north London, Thursday, Nov. 14, 2013.

Ozzy Osbourne has cancelled his upcoming Ozzfiesta event in Mexico to undergo surgery.

in Sports

Coyotes broadcaster charged with assault in casino fight

Phoenix Coyotes defenseman Nick Boynton warms up before facing the Colorado Avalanche in an NHL hockey game in Denver on Monday, Feb. 4, 2008.

Nick Boynton, an Arizona Coyotes broadcaster and former NHL defensemen, faces charges after biting an officer at a Buffalo casino.

in Sports

Tennessee fires basketball coach Donnie Tyndall

Tennessee head coach Donnie Tyndall responds to a officials call in the second half of an NCAA college basketball game against Vanderbilt on Wednesday, Feb. 11, 2015, in Nashville, Tenn. Tennessee won in overtime 76-73.

Tennessee fires coach Donnie Tyndall after one season, amid an NCAA investigation.