Toyota announced earlier this month that it will pay some $29 million to 29 states (includingMaryland) and American Samoa as part of its settlement related to safety recalls. The settlement is in response to the lawsuits filed in 2010 (by several state attorney generals), following in the wake of the global recall of 14 million vehicles which accelerated without notice. The lawsuit accused Toyota of failing to notify customers promptly about the problems.
Results of the investigation revealed a lack of communication between Toyota’s Japan and U.S. offices. Toyota has agreed to address communication lapses, post additional information for consumers on its website, and reimburse costs for certain owners related to having their cars repaired.
Toyota and The National Highway Traffic Safety Administration agree that the problem is likely sticky gas pedals, faulty floor mats and driver error rather than an electrical issue. So far, the car maker has paid more than $1 billion to settle claims related to the recalls, including a record $17.4 million fine to the U.S. government for failing to quickly report safety problems.
In addition to this settlement, Toyota has also begun to settle the various Wrongful Death lawsuits associated with its defective cars.