Toyota Agrees to $1.2 Billion Criminal Fine for Deceiving Consumers

After facing years of personal injury lawsuits, the Toyota Motor Corp has been slammed with a $1.2 billion criminal fine by the US Justice Department for intentionally misleading customers regarding the company’s automobile safety.

This is the largest criminal fine against an automobile manufacturer in US history.

The $1.2 billion fine dwarfs the $$66.15 million civil fine levied against Toyota by the National Highway Traffic Safety Administration for failing to recall their vehicles in a timely manner.

“In its zeal to stanch bad publicity in 2009 and 2010, Toyota misled regulators, misled customers, and even misstated the facts to Congress” said U.S. Attorney Preet Bharara. “Even while giving unequivocal assurances that it had fully addressed a grave safety problem, Toyota knew full well that the problem of unwanted acceleration persisted.”

US Attorney General Eric Holder also slammed Toyota, calling the company’s conduct toward consumers “shameful” and said that the auto maker showed “a blatant disregard for systems and laws designed to look after the safety of consumers. By the company’s own admission, it protected its brand ahead of its own customers. This constitutes a clear and reprehensible abuse of the public trust.”

Holder added that “other car makers should not make Toyota’s mistake,” possibly pointing a finger at General Motors for their latest slew of vehicle recalls.

Toyota issued a contrite statement on Wednesday, March 19th, saying they “cooperated with the U.S. Attorney’s office in this matter for more than four years” and had “made fundamental changes to become a more responsive and customer-focused organization, and we are committed to continued improvements.”

“At the time of these recalls, we took full responsibility for any concerns our actions may have caused customers, and we rededicated ourselves to earning their trust,” said Christopher P. Reynolds, chief legal officer, Toyota Motor North America. “In the more than four years since these recalls, we have gone back to basics at Toyota to put our customers first.”

“Entering this agreement, while difficult, is a major step toward putting this unfortunate chapter behind us. We remain extremely grateful to our customers who have continued to stand by Toyota. Moving forward, they can be confident that we continue to take our responsibilities to them seriously,” Reynolds concluded.

Last year, Toyota also settled a slew of personal injury and wrongful death lawsuits involving the failed 2009 and 2010 vehicle recalls to the tune of $1 billion, making it one of the largest automobile personal injury settlements in US history.

The Strom Law Firm Can Help with Vehicle Recall Personal Injury Cases

If you have experienced a problem with a defective product in your automobile, especially if a defective part has led to an auto accident, personal injury, or wrongful death, and a proper vehicle recall notice has not been issued, you may be entitled to compensation. The attorneys at the Strom Law Firm can help. We can help you with complicated auto insurance claims, and make sure you receive the compensation you deserve to help you with lost income and medical bills. Our attorneys are licensed to practice in South Carolina, Georgia, and New York. We offer free, confidential consultations to discuss the facts of your case, so contact us today at (803) 252-4800.