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Toyota Settlement: TM to Pay $1.2B in Criminal Probe

It has recalled more than 10 million vehicles over acceleration issues


Toyota (TM) will admit misleading consumers about problems with unintended acceleration in its vehicles as part of a settlement with U.S. regulators.

Toyota TM
Source: Flickr

Under the Toyota settlement, the Japanese auto giant will pay $1.2 billion and have an independent monitor appointed to review its internal practices. The Toyota settlement will bring to an end a four-year criminal probe into the way the automaker handled reports of unintended vehicle acceleration and how it disclosed the problems to regulatory agencies, the Associated Press notes.

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Toyota has recalled more than 10 million vehicles since 2009 to correct issues linked to the problem. Prior to the Toyota settlement, the company had already paid $66 million in U.S. fines due to tardy disclosure of the problems to regulators.

The Toyota settlement with regulators comes after the automaker settled a number of unintended acceleration lawsuits for $1 billion last year. The company had won all lawsuits over unintended acceleration that made it to court until December, when a jury in Oklahoma awarded $3 million in damages to the victims of an accident involving a 2005 Camry.

Toyota is still facing lawsuits over deaths and injuries attributed to the problem.

TM stock fell modestly in Wednesday morning trading. TM stock has gained about 6% over the past year.

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