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 Music

CHART TOPPERS: This week’s top rock tracks

godsmack

LISTEN: This week's top rock tracks, according to the latest Billboard charts.

in Music

Robert Plant urges Jimmy Page to give up Led Zeppelin reunion

2012 Kennedy Center Honorees and members of the band Led Zeppelin, from left, Jimmy Page, John Paul Jones, and Robert Plant chat on the red carpet after arriving at the Kennedy Center for the Performing Arts for the 2012 Kennedy Center Honors Performance and Gala Sunday, Dec. 2, 2012 at the State Department in Washington.

Robert Plant has urged his former Led Zeppelin bandmate Jimmy Page to end his war of words with the singer and concentrate on recording new music.

in Weird

Groom turns canceled wedding into charity benefit

Groom

A Pittsburgh man whose wedding was called off is making the best of the situation. Instead of getting married he's raising thousands for charity.

in Weird

From Texas, where everything is bigger, the 99-pack of beer

99beers

Invite the whole neighborhood to your cookout, because you're going to have plenty of beer.

in Weird

Australian farmers could have world’s woolliest sheep

Six-year-old Shaun the merino sheep may be the world's woolliest sheep. He had likely never been shorn in his life, but was due to have a date with the clippers in the next few days, farmers said.

Shaun the sheep was found wandering the Australian countryside with what is estimated to be a 55 lb coat.