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 Entertainment

Today in entertainment history: Dec. 19

dolly

A look back at some of Hollywood's most memorable headlines.

in Entertainment

Third ‘Night at the Museum’ marks final film for Williams, Rooney

nightatthemuseum

The credits for "Secret of the Tomb," which opens Friday, read "In loving memory of Mickey Rooney," and "For Robin Williams - the magic never ends."

in Music

Ray Price’s widow opens up after loss

FILE - In a Jan. 7, 2011, file photo, Country Music Hall of Fame member and Grammy Award winner Ray Price celebrates his 86th birthday by performing in Bullard Texas. Price, one of country music's most popular and influential singers and bandleaders who had more than 100 hits and was one of the last living connections to Hank Williams, died Monday, Dec. 16, 2013. He was 87.

Ray Price's widow refused to leave her house for four months in the aftermath of her husband's death.

in Entertainment

Chris Pratt thought ‘Guardians’ would be a box office flop

Guardians Of The Galaxy

The "Parks and Rec" star was very, very wrong.

in Entertainment

Sony cancels ‘The Interview’ in win for N. Korean hackers

interview

The $44 million raunchy comedy was scheduled to debut on Christmas Day.