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 Music

Glen Matlock denies new Sex Pistols reunion

John Lydon, right, and Glen Matlock of The Sex Pistols perform at the Roxy in West Hollywood, Calif., on Thursday, Oct. 25, 2007.

Sex Pistols star Glen Matlock dashes fans' hopes of another reunion by insisting he hasn't had any contact with John Lydon in five years.

in Music

Aretha Franklin storms out of fast food joint

FILE - In this May 11, 2013 file photo, Aretha Franklin performs during McDonald's Gospelfest 2013 at the Prudential Center in Newark, N.J.Franklin won’t say what has caused her latest health problems, but says she’s had a “miraculous” recovery and is looking forward to performing soon.In a phone interview on Tuesday, Aug. 20, Franklin said that she recently had a cat scan and that it showed she was 85 percent improved. The 71-year-old has canceled several concerts and public appearances and blamed it on unspecified treatment.

Aretha Franklin stormed out a Johnny Rockets in Ontario, Canada last week after a nasty encounter with a rude employee.

in Sports

Only arguing remains in Sterling trail

FILE - In this Nov. 12, 2010, file photo, Shelly Sterling sits with her husband, Donald Sterling, right, during the Los Angeles Clippers' NBA basketball game against the Detroit Pistons in Los Angeles. With a $2 billion sale of the Clippers hanging in the balance, a judge is set to determine Monday, June 30, 2014, if the terms of a family trust alone are enough to confirm Donald Sterling was properly removed as trustee and allow his estranged wife to sell the team without his consent.

Only final arguments and a ruling remain in the trial to determine whether Donald Sterling's estranged wife can sell the Los Angeles Clippers for $2 billion.

in Music

The Beatles wanted to film ‘Lord of the Rings’

FILE- This is a 1967 handout image from Parlophone of The British group, The Beatles,. From left, are: Ringo Starr, John Lennon, Paul McCartney; and George Harrison. The woman who as a child was the basis for the Beatles song "Lucy in the Sky with Diamonds" is gravely ill. It was thought by many at the time that the psychedelic song from Sgt. Pepper's Lonely Heart Club Band was a paean to LSD because of the initials in the title, but it was actually based on a drawing that John Lennon's young son Julian brought home from school. He told his father the drawing was of Lucy in the sky with diamonds. Lucy Vodden, now living in Surrey just outside of London _ drifted apart after schoolyard days, but they have gotten back in touch as Lennon has tried to help Vodden cope with Lupus, a life-threatening disease.

Peter Jackson reveals John Lennon could have played Gollum in a Stanley Kubrick directed LOTR adaptation.

in Sports

Paul McGinley pulls out of PGA Championship with injury

Paul McGinley of Ireland laughs during a news conference after being named the European Ryder Cup captain at the St. REgis in Saadiyat Islands in Abu Dhabi on January 15, 2013.

European Ryder Cup captain Paul McGinley has pulled out of the PGA Championship with a shoulder injury.