Autoblog

Toyota sudden acceleration class action may cover 22 million owners

Jeremy Korzeniewski — Thu, 16 May 2013 09:29:00 EST

Filed under: Government/Legal, Safety, Toyota, Earnings/Financials

A total of 22.6 million current and former Toyota owners have been sent notices that they may be eligible to receive compensation from the automaker for damages related to the unintended acceleration fiasco that has dominated headlines in 2009 and 2010. The total payout may be as high as $1.63 billion, according to The Detroit News.

Steve Berman, a lawyer for the owners, calls the potential deal "a landmark, if not a record, settlement in automobile defects class action litigation in the United States." Still, there's some debate about whether or not Toyota's proposed settlement is fair, as it includes $30 million for safety research and driver education programs - in other words, Toyota seems to be suggesting that drivers need more education on how to drive their correctly working and fully functional vehicles. For those keeping track, Toyota would also be paying lawyer fees of $200 million.

A US District Judge in California is scheduled to hold a so-called "fairness hearing" on June 14 that could decide the fate of this particular settlement. Further courtroom wrangling will be required to hash out any wrongful death suits levied against Toyota stemming from unintended acceleration claims, as those are not part of this class-action suit.

Toyota sudden acceleration class action may cover 22 million owners originally appeared on Autoblog on Thu, 16 May 2013 09:29:00 EST. Please see our terms for use of feeds.

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Toyota to settle $25.5M US investor lawsuit over unintended acceleration fallout

Chris Tutor — Wed, 14 Nov 2012 14:01:00 EST

Filed under: Government/Legal, Recalls, Lexus, Toyota

Toyota Motor Corp. has decided to settle a shareholder class action lawsuit for $25.5 million. The suit began in early 2010 after reports of accidents attributed to unintended acceleration cropped up. The class action accused Toyota of improperly disclosing "safety and quality issues" related to those reports.

The company later recalled as many as 10 million Toyota and Lexus vehicles in a program estimated to cost $5 billion. The public relations fallout dragged down the company's stock value by $30 billion.

The Maryland State Retirement and Pension System, a member of the lawsuit class, had previously estimated a successful trial could have ended with as much as a $124 million payout.

If you hold Toyota stock, though, don't start spending your winnings just yet. First, common stockholders were disqualified from the suit in 2011. Only claims by investors in Toyota's American Depository Shares are covered. Second, the settlement is only a proposal for now and must still be approved by US District Judge Dale Fischer.

A Toyota spokesman said in a statement that the company is "pleased to be turning the page on this legacy legal issue." The plaintiffs' counsel declined comment.

Toyota to settle $25.5M US investor lawsuit over unintended acceleration fallout originally appeared on Autoblog on Wed, 14 Nov 2012 14:01:00 EST. Please see our terms for use of feeds.

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Mini sued over CVT failures. Again.

Jonathon Ramsey — Fri, 13 Jul 2012 18:29:00 EST

Filed under: Convertible, Government/Legal, Hatchback, Mini

A group of Florida plaintiffs have come together to file a class action lawsuit against Mini. Their issue is with the reliability of the Continuously Variable Transmissions in first-generation Cooper hatchbacks from 2002-2006 and in Cooper Convertible models from 2006-2008. A cursory web search on the matter returns plenty of results from Mini owners complaining of the same issue, sudden failure of the CVT, and having mixed fortunes at Mini dealers when trying to get the situation resolved.

The Florida suit comes a year after a class action suit was filed against Mini in California for the same reason. As with the Florida case, the California legal action Brad Aarons v. BMW of North America, LLC sees "restitution, damages and other relief" for plaintiffs who were "required to spend approximately $6,000 to $9,000 (one-third to one-half of the original purchase price) to repair or replace their CVTs, or sell their vehicle without repair for a substantial loss...." Parent company BMW has not yet commented on the matter.

Mini sued over CVT failures. Again. originally appeared on Autoblog on Fri, 13 Jul 2012 18:29:00 EST. Please see our terms for use of feeds.

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Report: Motorists file class action suit against Florida toll road for... taking hostages?

Jeff Glucker — Wed, 23 Feb 2011 13:32:00 EST

Filed under: Government/Legal, Safety

Florida motorists are officially fed up with the actions of the Florida Department of Transportation (FDOT) and Faneuil Inc. The latter is a private firm hired by the FDOT to manage its tollbooth operations. A class-action lawsuit filed against both parties alleges that toll booth operators have been holding cash-paying motorists hostage.

Paying with cash causes an increase in operating costs for Faneuil because workers are needed to handle the money and provide change. In an apparent attempt to dissuade drivers from paying with cash, tollbooth operators are required to fill out Bill Detection Report. The driver's license plate number, vehicle make and model and driver's license information are all written down. The barrier isn't lifted until this information is provided, and many motorists feel this policy is out of control. For its part, Faneeil would prefer that drivers switch to the automated SunPass system, which would help reduce operating costs.

The lawsuit alleges that civil rights are being violated and claims this is a form of false imprisonment. Neither the FDOT or Faneuil have commented on the lawsuit.

[Source: TheNewspaper.com | Image: Getty]

Report: Motorists file class action suit against Florida toll road for... taking hostages? originally appeared on Autoblog on Wed, 23 Feb 2011 13:32:00 EST. Please see our terms for use of feeds.

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Judge: First Toyota lawsuits likely to go on trial in 2013

Zach Bowman — Thu, 20 Jan 2011 09:29:00 EST

Filed under: Government/Legal, Safety, Toyota

It looks like it will be some time before Toyota enters the court room for the very first of the mountain of lawsuits that were bundled by a federal judge in relation to sudden-acceleration claims.

A federal judge has said he wants the first of the cases to be tried in the beginning months of 2013. That means the pre-trial discovery of evidence should be wrapped up by the end of 2012. U.S. District Judge James V. Selna made the announcement at a hearing on January 14. For those keeping track, Toyota is staring down the barrel of around 400 lawsuits related to the recall of over 8 million vehicles.

According to Bloomberg, Selna specifically urged trial lawyers to select "bellweather cases" designed to test the claims of both plaintiffs and the defendant sooner rather than later. According to the report, attorneys on both sides of the cases have agreed to Selna's time table.

Meanwhile, another set of personal injury cases are set to go to trial in Texas in February or March of 2012.

[Source: Bloomberg]

Judge: First Toyota lawsuits likely to go on trial in 2013 originally appeared on Autoblog on Thu, 20 Jan 2011 09:29:00 EST. Please see our terms for use of feeds.

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Class action suit alleges BMW N54 turbo engine unsafe, causes Unintended Deceleration

Jeff Glucker — Tue, 12 Oct 2010 18:58:00 EST

Filed under: Etc., Government/Legal, Safety, Technology, BMW

2010 BMW 335i - Click above for high-res image gallery

The award-winning BMW N54 inline-six has been a hit around the world since it made its debut in the 2006 E90 335i. The twin-turbocharged engine produces around 300 horsepower and 300 pound-feet of torque and many have actually suggested that the Bavarian automaker's power figures have been conservative. When it came out, BMW promised this engine would virtually eliminate turbo lag, increase performance and improve fuel economy at the same time. In fact, it was so confident in its new engine that it spread it around, adding it to its 1, 3 and 5 Series cars, along with its Z4 sports cars and X6 crossovers.

Unfortunately, the N54 has also seen its fair share of owner complaints. Most notably, unhappy BMW drivers allege having two very important issues with the wündermill; the high-pressure fuel pump has a very high failure rate and a defect in the design of the turbochargers requires they be tweaked so as not to run at full capacity. Many BMW owners have officially had it with the N54 engine and a class-action lawsuit has kicked into gear.

Read the rest after the jump...

Gallery: Review: 2010 BMW 335i Sedan

Photos by Zach Bowman / Copyright (C)2010 AOL

[Sources: Kershaw, Cutter and Ratinoff, LLC, BimmerFest, Daily Finance]

Continue reading Class action suit alleges BMW N54 turbo engine unsafe, causes Unintended Deceleration

Class action suit alleges BMW N54 turbo engine unsafe, causes Unintended Deceleration originally appeared on Autoblog on Tue, 12 Oct 2010 18:58:00 EST. Please see our terms for use of feeds.

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Mazda Canada shoulder-checked with class-action lawsuit over bum door locks

Jonathon Ramsey — Thu, 13 May 2010 07:59:00 EST

Filed under: Government/Legal, Hatchback, Mazda, Canada

Canadian Alisha Koubi leased a 2006 Mazda3, then discovered that a locked driver's door could be opened by giving it a shoulder check. Reports say that at the same time she was reading about Mazda3s being broken into in a way that left dents above the driver's door, she was reading Mazda promotional material touting the safety and quality of the company's products. Her car was never broken into, but she decided to sue Mazda for selling "an unfit product for profit," and the case has just been granted class-action status in British Columbia.

Because the lawsuit isn't based on actual loss but the more nebulous idea of a breach of commercial duty, Koubi and her attorney want damages to be assessed based on Mazda's profits from all the Mazda3s sold and leased from 2004 to 2007. That covers 19,909 cars.

Mazda asserts that the door issue wasn't a defect. The company didn't publicize the issue, claiming it was afraid that would increase break-in rates, but it did add a reinforcement plate for any drivers that requested it on those cars and redesigned the lock on the next generation. No word on when it will go to trial, but similar lawsuits have also been launched in Quebec and Ontario. Thanks for the tip, Edwin!

[Source: CBC News]

Mazda Canada shoulder-checked with class-action lawsuit over bum door locks originally appeared on Autoblog on Thu, 13 May 2010 07:59:00 EST. Please see our terms for use of feeds.

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Report: Honda settles class-action lawsuit over premature brake wear

Chris Shunk — Wed, 07 Apr 2010 10:41:00 EST

Filed under: Government/Legal, Safety, Acura, Honda

Last September, a class-action lawsuit was filed against Honda looking for restitution for 750,000 late model Accord and Acura TSX owners. The suit claimed that a design defect in a new braking system led to excessive force on the rear brake pads that reduced the lifespan of the pads from 70,000 miles to under 20,000 miles. The cost to replace those rear pads? The suit claims the average total is about $150, but if the rotors were damaged, the price can spike to $250 or more.

A report in The New York Times shows that the months of legal wrangling has paid off for 750,000 owners of 2008 and 2009 Accords and the 2009 (plus a few 2010 models) Acura TSX. Honda has reportedly agreed to settle the suit without admitting responsibility or any wrongdoing, while also providing cash to customers with the brakes in question. Owners who have already gotten their brakes done will receive one half of the cost of repairs, or a maximum of $125, whichever is less. The owners in question will also receive $150 towards the cost of a set of new rear brake pads that Honda says will last longer than the units being replaced. The law firm handling the case will reportedly receive $2 million for its efforts. In total, Honda could be on the hook for well over $100 million if all affected owners receive new brakes.

With the class-action suit settled, the next step is for Judge Margaret M. Morrow of the United States District Court for the Central District of California to give the agreement an official seal of approval in May.

[Source: The New York Times]

Report: Honda settles class-action lawsuit over premature brake wear originally appeared on Autoblog on Wed, 07 Apr 2010 10:41:00 EST. Please see our terms for use of feeds.

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Toyota being sued by shareholders for lying about its business

Jeremy Korzeniewski — Mon, 22 Mar 2010 16:28:00 EST

Filed under: Government/Legal, Recalls, Safety, Toyota, Earnings/Financials

Last Friday, Toyota's stock closed at $79.56. That represents a 12-percent drop in market capitalization. For those keeping track, that's a loss of $15 billion. Naturally, there are a number of none-too-pleased shareholders hanging on to their stock in the Japanese automaker.

As such, it comes as little surprise that law firm Murray, Frank & Sailer has filed a class-action lawsuit in U.S. District Court in California on behalf of any and all shareholders who purchased stock between Dec. 22, 2009 and Feb. 2, 2010. The suit contends that Toyota issued "materially false and misleading statements" and "failed to disclose ongoing safety issues and quality control problems with Toyota's automobiles," especially issues related to alleged cases of unintended acceleration.

Would shareholders that purchased stock in Toyota have done so if the automaker had taken a more pragmatic stance on the problems it was about to face? It would seem that's up for a judge to decide.

Peter Henning, a Wayne State University law professor cited by The Detroit News, points out that securities cases are notoriously difficult to prove. "You are going to have to prove knowledge among the corporate management. Unless something else emerges, it seems that Toyota didn't think that it would be the kind of problem that it turned out to be," said Henning.

A three-judge panel is set to meet on Thursday to consider this and all other impending class action suits against the beleaguered automaker. Until then, Toyota certainly has its hands full with potential headache-inducing litigation to consider.

[Source: The Detroit News | Image: Junko Kimura/Getty]

Toyota being sued by shareholders for lying about its business originally appeared on Autoblog on Mon, 22 Mar 2010 16:28:00 EST. Please see our terms for use of feeds.

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Toyota being sued for full refund of recalled vehicles

Jeremy Korzeniewski — Tue, 16 Mar 2010 16:57:00 EST

Filed under: Government/Legal, Recalls, Safety, Toyota

"When we talked with Toyota owners, they all voiced the same desire - to drive the car back to the lot, hand them the keys and pick up a check." So says Steve Berman, a lawyer from Seattle who has filed a class action lawsuit against Toyota on behalf of "dozens" of owners in Arizona and Washington. Fat chance, right?

Not so fast, answers Berman. "Fortunately, we think the law allows for exactly that solution, and we are asking the courts to make it happen." While this isn't nearly the first class action suit filed against Toyota since revelations of the car's possible tendency to accelerate out of control, it is the first such case that seeks a full refund for each car sold.

According to The San Francisco Chronicle, most such suits are only seeking to get back around $500 per owner, or roughly the amount Kelley Blue Book believes the average Toyota has lost in resale value due to allegations the vehicles are unsafe. That would equal more than $3 billion. Berman's suit, though, could add up to many times that amount if successful.

Even if Berman's would-be class action suit fails, Toyota may be in for more rough times courtesy of the Attorneys Toyota Action Consortium (ATAC), which is adding racketeering claims to a number of its lawsuits. Northeastern University law professor Tim Howard, who is coordinating the ATAC, says, "It's become increasingly apparent that Toyota profits were not built on quality products, but on a willful pattern of deception, fraud and racketeering."

In any case, a group of federal judges in San Diego will meet in one week to determine whether the 110 or so class action suits against Toyota should be combined into one single case and whether that case should proceed to trial. We'll be watching.

[Source: San Francisco Chronicle via Inside Line | Image: Justin Sullivan/Getty]

Toyota being sued for full refund of recalled vehicles originally appeared on Autoblog on Tue, 16 Mar 2010 16:57:00 EST. Please see our terms for use of feeds.

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Class action suit filed against Toyota over sudden acceleration claims

Jeremy Korzeniewski — Mon, 09 Nov 2009 08:58:00 EST

Filed under: Government/Legal, Safety, Lexus, Toyota

Following a statement from the DOT and NHTSA asserting that the unintended acceleration issue potentially involving millions of Toyota vehicles is "not closed," McCuneWright, LLP, a law firm in Southern California, has filed a national class action lawsuit on behalf of all Toyota and Lexus owners that claim to have experienced this phenomenon. Representing the class will be Los Angeles County residents Seong Bae Choi (owner of a 2004 Camry) and Chris Chan Park (owner of a 2008 FJ Cruiser).

According to the suit, Toyota has known about reports of unintended acceleration for years and has received over 2,000 such complaints. Citing statistics from Safety Research & Strategies, Inc., the lawsuit alleges that there have been 16 fatalities and 243 injuries from Toyota and Lexus crashes attributed to runaway vehicles. Toyota attributes these accidents to improperly installed or incorrect floormats that prevent the accelerator pedal from returning to its idle position.

Wright, though, said in a statement, "[N]either driver error nor floormats can explain away many other frightening instances of runaway Toyotas. Until the company acknowledges the real problem and fixes it, we worry that other preventable injuries and deaths will occur." Hit the jump for the official press release from McCuneWright.

[Source: McCuneWright, LLP]

Continue reading Class action suit filed against Toyota over sudden acceleration claims

Class action suit filed against Toyota over sudden acceleration claims originally appeared on Autoblog on Mon, 09 Nov 2009 08:58:00 EST. Please see our terms for use of feeds.

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Odo Uh-Oh: Honda extending warranties on 6 million cars

John Neff — Mon, 19 Feb 2007 12:25:00 EST

Filed under: Government/Legal, Honda

Honda has decided to settle a class-action lawsuit that alleges its odometers were racking up miles too fast. The automaker says odometers on some 6 million Hondas affected by the suit were accurate to within 3.75% on the high side. The NHTSA doesn't regulate odometer accuracy, and the only industry standard is a voluntary one set by the Society of Automotive Engineers that says odos should be within +/-4%. While the car's affected by the suit fall within that range, Honda recognized that its customers expected their odometers "would be based on zero," and they weren't.

The settlement will lengthen the warranty mileage of affected vehicles by 5% and Honda will pay lease-mileage penalties incurred by owners, which is expected to cost the automaker around $6 million. If you own a 2002 to 2006 Honda or Acura bought between April 12, 2002 and November 7, 2006, then you're eligible for the benefits of the settlement.

The lawsuit also prompted lawyers to test the odometer accuracy of other vehicles. It was found that on average domestic vehicles were nearly perfect in their odo accuracy, while Toyotas actually racked up fewer miles on the clock than they did in reality. Nissans, however, didn't fare as well, and a new class-action suit has been filed on behalf of Altima owners who say their odometers are counting the miles 2.5% to 3% faster than they should.

[Source: USA Today]

Thanks for the tip, John!

Odo Uh-Oh: Honda extending warranties on 6 million cars originally appeared on Autoblog on Mon, 19 Feb 2007 12:25:00 EST. Please see our terms for use of feeds.

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Loud Land Rovers land company in class-action lawsuit

John Neff — Thu, 18 Jan 2007 17:28:00 EST

Filed under: SUV, Government/Legal, Recalls, Land Rover

What's with all these class-action lawsuits lately? Land Rover was just slapped with one thanks to Attorney Mark Anderson in California who filed suit on behalf of all 2004 and 2005 Land Rover LR3 owners in the state. Turns out that the tires on many of these LR3 SUVs are allegedly wearing unevenly, which causes them to make loud noises when the vehicle is moving. The piece we link to from KGO-TV Channel 7 in the Bay Area highlights the trouble of one man, Lew Colon, whose LR3 developed the noise after only 5,000 miles. After some complaining, Colon got Land Rover to give him three new tires, though he had to pay for the fourth. After another 6,000 miles, however, the tires started to wear unevenly again and the noise returned. At 25,000 miles now, Colon's still on that second set.

Land Rover has issues a technical service bulletin about the abnormal wear with instructions for service technicians to use new suspension settings. It would seem that the company at least acknowledges the rapid and uneven tire wear can be traced back to a flaw in the vehicle's suspension design, but so far it has not issued a recall to fix the problem. In the meantime, Colon and the rest of the LR3 owners in California will be filing suit against the automaker to seek a solution.

Thanks for the tip, Oliver!

[Source: KGO-TV Channel 7]

Loud Land Rovers land company in class-action lawsuit originally appeared on Autoblog on Thu, 18 Jan 2007 17:28:00 EST. Please see our terms for use of feeds.

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GM Dexcool lawsuit may soon gain class-action status

Eric Bryant — Tue, 23 May 2006 11:31:00 EST

Filed under: Maintenance, Government/Legal, GM

The bright orange Dexcool coolant used in many General Motors vehicles over the past decade promised to bring extended maintenance - 5 years or 150,000 miles - to cooling systems, but many owners instead found themselves with vehicles that required system flushes, gasket replacement, and even new radiators and heater cores just outside of the vehicle's warranty period. The blame for the problem depends on who you talk to, and the causes include the "stop-leak" pellets added at the factory, contamination with air from system leaks (Dexcool can quickly degrade when exposed to excess oxygen), and improper service that involved added non-Dexcool coolant or tap water to the cooling system.

Whatever the cause of the problem, several lawsuits have been filed in state and federal court by owners who, in many cases, are justified in their anger over the lack of performance by this coolant. A ruling may soon be forthcoming from a judge in East St. Louis, IL, that would result in a set of consolidated suits gaining class-action status - a move that would open up the lawsuits to involve potentially millions of GM customers. For its part, the automaker says that the recommend service interval in the owner's manual is exactly that - a recommendation, and not a warranty guarantee.

For what it's worth, the Autoblog staff has found that Dexcool works just fine in a cooling system that is free of contaminants and leaks, but indeed the stuff will turn into a gooey mess if mixed with anything but distilled water or if exposed to air. Also, those drivers who do not get their vehicles up to normal operating temperatures every trip may want to consider an accelerated coolant maintenance schedule.

GM Dexcool lawsuit may soon gain class-action status originally appeared on Autoblog on Tue, 23 May 2006 11:31:00 EST. Please see our terms for use of feeds.

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GM slapped with gasket class-action lawsuit in Canada, claims could hit $1.2 billion

Chris Paukert — Wed, 26 Apr 2006 11:31:00 EST

Filed under: Trends, Government/Legal, Recalls

Earlier this month, Autoblog informed you about General Motors electing to handle a widespread intake manifold gasket defect on a vehicle-by-vehicle basis. But if Toronto-based law firm Stevensons LLP has any say in the matter, the automaker won't have the option to be choosy with some 400,000 Canadian vehicles.

The firm announced Tuesday that it is filing a class-action lawsuit against General Motors of Canada Ltd., as well as parent company General Motors Corp. The suit is predicated on the premature failure of intake manifold gaskets used in a wide range of the company's vehicles from 1995-2003. Given the 400,000 vehicle estimate by Stevensons and an average claim of $3,000 per vehicle, the class-action tab could balloon to $1.2 billion dollars.

A similar lawsuit in the U.S. was granted class-action status in January.

Click on the link to see further details, including a list of affected vehicles.

[Sources: The Canadian Press via Canada.com; Canadianally.com]

GM slapped with gasket class-action lawsuit in Canada, claims could hit $1.2 billion originally appeared on Autoblog on Wed, 26 Apr 2006 11:31:00 EST. Please see our terms for use of feeds.

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