Toyota to Pay $16 Million in DA's Deceptive Business Practices Suit

Torrance-based Toyota Motor Sales USA will pay $16 million to settle a lawsuit alleging the company concealed the sale of defective vehicles, the Orange County District Attorney's office announced today.

The deceptive business practices lawsuit, which stemmed from allegations that Toyota vehicles were prone to sudden acceleration problems, was filed in Orange County Superior Court in March 2010.

Half the settlement will be set aside for the Orange County Gang Reduction Intervention Partnership, or OC GRIP, which is run by the District Attorney's Office, the Orange County Sheriff's Department, multiple law enforcement agencies for cities throughout the county, the Department of Education, and many private companies and organizations such as the Los Angeles Angels of Anaheim and Ford Motor Company.

The OC GRIP program helps at-risk fourth- and fifth-graders avoid gangs and improve their school work.

Another $4 million will cover the legal fees of the District Attorney as well as outside counsel, including Mark Robinson Jr., a Newport Beach-based attorney who led the wrongful death class action lawsuit against Toyota in federal court that was also settled this year for about $1.3 billion.

The remainder of the money will be used to fight economic crime in the county.

"Toyota has a major presence in Orange County where unintended acceleration events also occurred," Rackauckas said. "Thus, as a law enforcement official, I had my office bring this action to ensure that Toyota is transparent about safety issues and fully complies with the law in the future."

Robinson did not immediately respond to a request for comment.

Toyota blamed the sudden acceleration incidents on sticky accelerator pedals and poorly fitted floor mats. Plaintiffs in the federal lawsuit, however, have alleged Toyota knew of problems with its electronic-throttle control systems and did not fix them with brake-override devices as rival companies did.

Christopher P. Reynolds, group vice president and general counsel for Toyota Motor Sales USA, said the company was pleased with the settlement.

"As we continue to turn the page on legacy legal issues related to our past recalls, we are pleased to have resolved these allegations in a way that supports the communities where our customers live and work," Reynolds said. "Having addressed floor mat and 'sticky pedal' issues with effective and durable solutions, we are gratified that Toyota vehicles are once again widely recognized as among the safest and most reliable on the road. We remain focused on continuously enhancing our quality assurance operations and strengthening our ability to meet customer expectations, and we are grateful for their continued support."

 - City News Service