Submitted by Aiken Jacobsen on
Several years after a California family died due to faulty floor mats and an acceleration problem in their Toyota, the car manufacturer has entered into an agreement with the U.S. Department of Justice. In handing down his decision, the judge urged additional charges be levied against high-level Toyota officials who are linked to the defective vehicles.
The automaker agreed to pay a penalty of $1.2 billion as part of the deal to avoid trial in federal court. Across the country there are about 400 wrongful death lawsuits still pending settlements as a result of the safety flaw. Consolidated cases in California courts represent many of these.
A surprising burst of uncontrolled speed while driving led to numerous Toyota car crashes resulting in fatalities and other serious injuries. An investigation determined that poorly designed floor mats and sticky pedals led to the problem.
The judge said that this case “demonstrates that corporate fraud can kill.” The manufacturer has pledged to respond more quickly to driver safety issues and other consumer complaints in the future. A provision of the Justice Department deal requires the company to hire a monitor to assess corporate processes around dealing with defects.
If the company had taken these actions on its own when the automobile defect first came to light, many families might have been spared medical expenses, funeral costs, loss of companionship and the pain and suffering of losing a loved one. Instead, as Attorney General Eric Holder pointed out at a recent news conference, Toyota looked at the issue “as if it were a simple public relations problem.”
Source: SouthCoastToday, “Judge accepts $1.2B Toyota penalty,” Larry Neumeister, March 21, 2014
