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 Sports

Kentucky remains undefeated after beating Notre Dame & moves on to Final Four

Kentucky's Trey Lyles, left, and Karl-Anthony Towns, right, listen to Willie Cauley-Stein during the team's news conference at the NCAA men's basketball tournament regional, Friday, March 27, 2015, in Cleveland. Kentucky plays Notre Dame in the final Saturday, hoping to extend their unbeaten streak and reach the Final Four.

Andrew Harrison hit two free throws with six seconds left as the Wildcats survived a 68-66 win over third seed Notre Dame.

in Sports

Wisconsin heads to Final Four after win over Arizona

Wisconsin Badgers Head Coach Bo Ryan works with the team during the first round of the NCAA Midwest Regional basketball game in Omaha, Neb., Thursday, March 20, 2008

The Badgers (35-3) denied the Wildcats (34-4) a Final Four berth for the second straight year, having beaten them by one point in overtime in Anaheim a year ago when their seeds were reversed.

in Sports

AP sources: Texas fires coach Barnes after 17 years

The NCAA logo is on the court as work continues at The Consol Energy Center in Pittsburgh, Wednesday, March 18, 2015, for the NCAA college basketball second and third round game. Second round games start on Thursday.

Texas has fired coach Rick Barnes after 17 seasons, people with knowledge of the situation told The Associated Press.

in Sports

Hot Rod Hundley, former NBA player and Jazz announcer, dies

image

The Jazz said Hundley died at his home in the Phoenix area Friday night.

in Sports

NCAA on KPUG: Notre Dame looking for luck of the Irish vs. Kentucky

The Notre Dame mascot performs during the first half of an NCAA college basketball game against Miami in the quarterfinals of the Atlantic Coast Conference tournament in Greensboro, N.C., Thursday, March 12, 2015.

NCAA Tournament on KPUG: Arizona vs. Wisconsin at 3pm, Notre Dame vs. Kentucky at 5:50pm.

Bellingham Traffic