Toyota Reaches Potential $150M U.S. Settlement Over Fuel Pump Recalls

Toyota Motor Corp reached a potential $150 million settlement to resolve U.S. class-action litigation related to recalls of approximately 3.36 million Toyota and Lexus vehicles with defective fuel pumps that could cause engines to stall.

Source: Reuters | Published on September 9, 2022

On Wednesday night, a preliminary settlement was filed in federal court in Brooklyn. It must be approved by a judge.
The settlement applies to owners and lessees of dozens of Toyota and Lexus vehicle models built from 2013 to 2020 and equipped with Denso low-pressure fuel pumps.

Drivers reported that faulty pumps caused their vehicles to "run rough," lose engine power, and stall, particularly at low speeds.

Toyota stated that problems were more common in the southern United States, where the weather is warmer.

Over the course of 2020 and 2021, more than 5.8 million vehicles worldwide were recalled due to the defect.

Toyota will extend the fuel pump warranties to 15 years or 150,000 miles, whichever comes first, and will provide drivers with complimentary loaner vehicles and towing options for repairs as part of the settlement.

Drivers may also seek compensation for previous repairs, such as loaner vehicles and towing.

In agreeing to settle, Toyota and Denso International America Inc, which was also a defendant, did not admit wrongdoing.

Toyota said in a statement, "We are pleased to have resolved this litigation in a way that demonstrates our commitment to providing customers with a great ownership experience."

Dee Miles, a partner at the Beasley Allen law firm representing the plaintiffs, stated that the settlement provides drivers with a "full remedy."

"The value of the settlement is still being analyzed by experts," he said in an email. "Based on the initial analysis, we fully expect that settlement value to exceed $150 million."

The plaintiffs' attorneys may seek up to $28.5 million in legal fees as part of the settlement.

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