Consumer Law

Toyota to pay $29M to resolve state probes of its handling of sudden acceleration claims

Toyota Motor Corp. has resolved another legal headache over sudden acceleration allegations.

The automaker agreed on Thursday to pay $29 million to 29 states and American Samoa to resolve a probe of its handling of unintended acceleration claims, report the Wall Street Journal (sub. req.), the National Law Journal, the Associated Press and the Los Angeles Times. The states had accused Toyota of failing to disclose vehicle problems quickly to customers.

As part of the agreement, Toyota agreed to notify new buyers of used vehicles about defects and to refrain from designating vehicles with safety defects as “Toyota certified,” according to the NLJ account. The automaker will also expand rapid response teams that respond to reports of safety problems, and will reimburse vehicle owners for expenses incurred during recalls to address sticky accelerators and problem floor mats.

In December, Toyota agreed to pay more than $1 billion to settle economic claims by customers in federal multidistrict litigation.

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