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 Viral Videos

Famous album covers come alive

18-overlay1

No, your eyes aren't tricking you. The album covers in Roy Kafri's new music video ARE singing along.

in Music

Brantley Gilbert engaged to mystery woman

brantley

The country star is preparing the tie the knot with an unnamed woman from his hometown of Jefferson, Georgia.

in Entertainment

Oprah, Neil Patrick Harris among year’s most ‘fascinating’

FILE - This Sept. 20, 2009 file photo shows host Neil Patrick Harris during the 61st Primetime Emmy Awards in Los Angeles. Harris will host the Emmys again. CBS will air the Emmycast live from Los Angeles on Sept. 22. (AP Photo/Mark J. Terrill, file)

Barbara Walters is back with her annual TV special.

in Entertainment

Toys ‘R’ Us pulls ‘Breaking Bad’ dolls after protest

breaking

If a Walter White action figure was on your Christmas list, it just got more difficult to find.

in Music

Reba McEntire planning new album

reba

The country star has already recorded 11 new songs.