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

Original AC/DC frontman to write tell-all

18-overlay3

Dave Evans, who was eventually replaced by Bon Scott, is planning a book about his time in the music business.

in Sports

After death of 9-year-old, no more bat boys and girls

13-overlay2

The National Baseball Congress is suspending the use of bat boys and girls during its World Series in Kansas following the death of a 9-year-old boy who was hit by a bat.

in Sports

WATCH: WWE salutes the late ‘Rowdy’ Roddy Piper

12-overlay1

One of the most iconic wrestlers in the history of the WWE died last week at the age of 61.

in Sports

Stanley Cup winner Schneider new Hall of Famer

nhl

Stanley Cup winner Mathieu Schneider is among four new inductees to the U.S. Hockey Hall of Fame.

in Sports

Prosecutors: Hernandez tipster had sex ties with ex-NFL star

aaronhernandez

Massachusetts prosecutors said on Monday that an anonymous caller, who told lawyers for former NFL star Aaron Hernandez that one of the jurors who found him guilty of murder should have been disqualified, had a sexual relationship with the athlete.