A Class Action Lawsuit against Toyota can result in a massive settlement if the case goes to trial. The Class Action Lawsuit refers to a lawsuit or class proceeding in which people who have been affected by an injury or accident to bring their lawsuit to an end with a settlement. Class actions are often structured in such a way as to give many people a chance to be part of the settlement and participate in a fair process. This article will explain how a Class Action Lawsuit works, and how it can be used to file a personal injury lawsuit.
As described above, a class action lawsuit occurs when a lawsuit is brought on behalf of group members. The suit names as defendants the manufacturer of the product or products whose safety was affected. The class action lawsuit is then filed by 21 individuals whose cars were damaged by rodents after Toyota changed to the new soybean-based paint, and who charge that the company did not make required repairs to protect them from harm. They are also accusing the company of negligence in failing to warn them that the new paint was dangerous. The company maintains that it offered all its customers the best warranty and vehicle protection possible, and that any loss or damage was caused by unanticipated wear and tear.
Recently, the car maker reached a potential settlement in the case, reaching a class action lawsuit settlement worth more than $1.6 billion. If this happens, it will mark the biggest car recalls in history. The settlement was reached because a recent official study indicated that a significant number of Toyotas could have a defect that causes sudden acceleration. Sudden acceleration is one of the main causes of car accidents and is also one of the reasons why many Toyotas end up in owners’ repair shops. In recent years, more than a million Toyotas have been recalled for serious issues, many of which involved the engines. As a result of those recalls, the car company had to pay out a massive fine.
Because the car is so popular, and because so many people own them, there are literally thousands of complaints each year about Toyotas and other vehicles. Complaints are made about everything from brake dust to sudden acceleration and misalignment of tires. The Toyota class action lawsuit claims that the automaker knew about the defective vehicles in its line of products for years, yet failed to notify authorized dealers or the National Highway Traffic Safety Administration that the vehicles were dangerous. Only recently has Toyota admitted to the defects and is currently paying out hundreds of millions of dollars in claims.
Toyota’s auto parts division alone manufactures more than five million vehicles. Only a fraction of them have been replaced because of defects. It is estimated that about twenty-five percent of those vehicles have needed to be returned because of problems with their fuel systems or airbags. When you add up all the direct selling and body repair claims that result from vehicle recalls over the past two decades, you start to see how significant a role the fuel systems and airbags play in the company’s finances. In addition to substantial monetary damages, class action lawsuit participants receive substantial benefits under California law.
Last spring, Toyota introduced two major innovations to its lineup-the All Season Cabriolet. Both vehicles have been sold less than well. About ten thousand units of the All Season were recalled last spring because of an oil change defect. An investigation determined that the oil change fix wasn’t done by the authorized Toyota dealer, but instead by someone working for the Japanese distributor. Since this example, Toyota has enacted strict guidelines for authorized dealers and body shops to perform oil changes as instructed by Toyota.