Toyota agreed to pay $32 million in fines to US government over safety defects

On December 21, 2010, the Toyota Motor Corporation agreed to pay a record-setting $32.4 million in fines to the Treasury Department for product defects and poor handling of a recall.The National Highway Traffic Safety Administration (NHTSA) conducted two separate investigations concerning five million vehicles with defective accelerator pedals and Toyota's failure to notify the NHTSA of a safety defect in steering relay rods. The accelerator pedal defect led to a class action lawsuit in which Toyota owners claimed economic damages because the company failed to fix the defect, hurting the resale value of their vehicles. Toyota settled that suit on November 14, 2012, for $25.5 million.

Learn more about Toyota from the JURIST news archive, and read a discussion by JURIST Guest Columnist Bruce Aronson on Toyota's board of directors in JURIST Forum.

 

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