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March 14, 2010

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Toyota gets first consumer lawsuit

SOUTHERN California prosecutors filed the first US consumer protection lawsuit against Toyota Motor Corp on Friday, claiming it had engaged in "fraud" by hiding dangerous vehicle defects.

Orange County District Attorney Tony Rackauckas said his office and private attorneys sued the US sales arm of Toyota, charging that the top-selling auto maker had endangered the public with defective vehicles and engaged in deceptive business practices.

"Against this backdrop of fraud and concealment, Toyota has for decades touted its reputation for safety and reliability and knew that people bought its vehicles because of that reputation, and yet purposefully chose to conceal and suppress the existence and nature of defects," said the 18-page lawsuit filed on Friday morning.

The suit seeks to keep Toyota "from continuing to endanger the public through the sale of defective vehicles and deceptive business practices." It charges that Toyota knew about the defects.

A Toyota spokesman said the company had no immediate comment.

Toyota has recalled more than 8 million vehicles globally to address the risk that accelerator pedals on a range of its vehicles could become stuck because of a loose floor mat or a glitch in the pedal assembly.

Unintended acceleration in the company's Toyota and Lexus vehicles has been linked to at least five US crash deaths since 2007. Authorities are investigating reports alleging 47 other fatalities over the past decade.

Rackauckas said he was becoming increasingly concerned about the safety of consumers and that his office had jurisdiction because Toyota's US headquarters is in California.



 

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