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

TOP 10: Countdown the hottest songs this week

25-overlay

The top 10 songs from the Billboard Hot 100 chart for the week ending July 4.

in Entertainment

See what’s new on Netflix this month

17-overlay6

Are you over fireworks and cookouts? Stay inside and binge on these movies and shows that are now showing on Netflix.

in Entertainment, Sports

Mayweather, Pacquiao, Perry among the ‘best paid’ celebrities

maypac

Musicians and athletes dominate the world's highest-paid celebs, according to the latest rankings.

in Entertainment, National

Celebrate safely with these fireworks tips

Since Independence Day falls during the work week, members of St. Richard Catholic Church celebrated the holiday on Sunday, June 30, 2013, with a picnic-style outing complete with fireworks that could be seen throughout the northeast Jackson, Miss. neighborhood. The long streamers were recorded in a 13-second time exposure. (AP Photo/Rogelio V. Solis)

Don't be one of the thousands of Americans injured by fireworks on July Fourth. Stay safe and have a happy holiday!