Toyota to settle U.S. truck rust lawsuit for about $3.4 billion

Toyota Motor has consented to a settlement of approximately $3.4 billion for a federal class action brought by U.S. owners of pickup trucks and SUVs whose frames might rust through, complainants attorneys have stated in court documents.

The proposed settlement includes 1.5 million Tacoma compact pickups, Tundra full-size pickups and Sequoia SUVs accused to have gotten insufficient rust protection that could result in corrosion severe adequate to endanger their structural stability, as per court papers.

Lawyers for the complainants in court papers supporting the settlement approximated the value of frame replacements at about $3.375 billion based upon a cost of about $15,000 per automobile and the evaluations at about $90 million at $60 per automobile.

Toyota admitted no liability or misbehavior in the proposed settlement submitted on Wednesday before U.S. District Judge Fernando Olguin in Los Angeles.

“We desire our clients to have a great ownership experience, so we are pleased to solve this litigation in a way that benefits them and demonstrates that we support the quality and reliability of our automobiles,” Toyota stated.

Under the settlement terms, Toyota will examine the automobiles for 12 years from the day they were first sold or leased to determine whether frames have to be replaced at business cost and reimburse owners who formerly spent for frame replacement.

The settlement reached on October 31 includes Tacoma trucks from the model years 2005 through 2010, Sequoias from 2005 through 2008 and Tundras from the 2007 and 2008 model years.

Toyota also accepted to pay $9.75 million in lawyers’ charges, $150,000 in costs and expenses, and $2,500 each to the named eight class agents as well as the expense of promoting the settlement.