Toyota reaches potential $150 mln U.S. settlement over fuel pump recalls

Nov 14, 2023

[1/2] Toyota Motor Corp's logo is pictured on a car in Tokyo, Japan, November 8, 2016. REUTERS/Kim Kyung-Hoon

NEW YORK, Sept 8 (Reuters) - Toyota Motor Corp (7203.T) reached a settlement potentially worth $150 million to resolve U.S. class-action litigation tied to recalls of about 3.36 million Toyota and Lexus vehicles whose defective fuel pumps could cause engines to stall.

A preliminary settlement was filed on Wednesday night in federal court in Brooklyn. It requires a judge's approval.

The settlement covers owners and lessees of dozens of Toyota and Lexus vehicle models manufactured in the 2013 to 2020 model years and equipped with Denso low-pressure fuel pumps.

Drivers complained that defective pumps caused vehicles to "run rough," lose engine power, and stall, especially at low speeds.

Toyota has said problems were reported more often in the southern United States, where weather is warmer.

More than 5.8 million vehicles worldwide were recalled in 2020 and 2021 over the defect.

Under the settlement, Toyota will extend warranties for the fuel pumps to 15 years or 150,000 miles, whichever comes first, and provide drivers with complimentary loaner vehicles and towing options for repairs.

Drivers may also seek reimbursement for prior repairs, including for loaner vehicles and towing.

Toyota and Denso International America Inc, which was also a defendant, did not admit wrongdoing in agreeing to settle.

"We are pleased to have resolved this litigation in a way that demonstrates our commitment to providing customers with a great ownership experience," Toyota said in a statement.

Dee Miles, a partner at the Beasley Allen law firm representing the plaintiffs, said the settlement provides a "full remedy" for drivers.

"The value of the settlement is still being analyzed by experts, but based on the initial analysis we fully expect that settlement value to exceed $150 million," he said in an email.

Law firms representing the plaintiffs may seek up to $28.5 million for legal fees in reaching the settlement.

The case is Cheng et al v Toyota Motor Corp et al, U.S. District Court, Eastern District of New York, No. 20-00629.

Our Standards: The Thomson Reuters Trust Principles.