Toyota's Legal Nightmare
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Toyota's Legal Nightmare
Toyota's troubles have just begun. All the recalls for acceleration and braking problems have caused a massive number of lawsuits, and not just suits related to death and injuries attributed to safety problems—at least 30 lawsuits seeking class-action status have been filed to pay consumers for the vehicles' reduced value and lost use during repairs. For instance, a team of 22 law firms in 16 states are working on a class-action suit aimed at recovering lost car value. According to the head of the legal team, it should be easy to prove damages, as the value of Toyotas have fallen 2.5 percent to 4.5 percent from four weeks ago. If a typical vehicle was worth $10,000 before the recalls and lost 3.5 percent in value, that's a $350 loss per car. With six million Toyotas recalled, the damages could reach $2.1 billion. If plaintiffs are able to prove that Toyota knew about the defects but did nothing, Toyota could be on the hook for double that. And that's just one of the many suits facing the company.



topdocjim
This lawsuit lottery in America has gone damned far enough. I recommend that Toyota announce tomorrow that they are suspending all automobile sales in the United States until further notice. A couple of moves like this and maybe we will throw off the shackles of the billionaire trial lawyers and get this country back on track.
Johnnyappleseed
That would really be a way to get americas attention, maybe then we can get some tort reform.
The government owns a (kinda) automobile manufacturer, and can drive their competition out of business with recalls and the power of government .....Sad day for America.
Centerleft
I'm waiting to hear from the GOP
HarveyY
All these years where American auto manufacturers gave us lousy cars, unreliable, and false or misleading advertising leading the public to think they are getting value, a Toyota comes along with highly reliable cars, cost efficient, and they built plants in the U.S. and hired thousands of workers here.
Now they have a problem, and the bloodsucker lawyers and their litigant happy clients want to ruin them. And the American car companies smell blood, not from their own building and delivering a better product, but from Toyota's misfortunes.
I say let them fix their problems, and go back to giving us great cars at great value. Throw out the damn law suits except where there was injury or death Only the lawyers will get rich and that is one poor sick reason for hurting one of the finest firms on Earth.
Maybe they knew of a problem but this is very complex in a huge industrial, and often people don't admit. They will clean their own house.
My 2003 Toyota is way better then any car I've owned and that included Benz, BMW, Pontiac, Ford, Dodge.
My blogs: http://TheHarvView.blogspot.com
AngryJ
You should have bought a Chevy.
AngryJ
Surprise, surprise, surprise, lawyers seeking class action lawsuits...I think we should stop fixing the Toyota's and just give them to the lawyers...
mrmagoo
> I think we should stop fixing the Toyota's and just give them to the lawyers...
Either behind the wheel or in front of the vehicle. Either will do.
BeastyBoy
Former Toyota Lawyer Tells ABC News Automaker Hides Safety Problems
In His First On-Camera Interview, Dimitrios Biller Accuses Company of 'Hypocrisy and Deceit'
By JOSEPH RHEE, ASA ESLOCKER and MARK SCHONE
ABC News Feb. 10, 2010 -
In an exclusive interview with ABC News, a former top lawyer for Toyota claims the automaker regularly hid evidence of safety defects from consumers and regulators, and fostered a culture of "hypocrisy and deceit."
"You have to understand that Toyota in Japan does not have any respect for our legal system," said Dimitrios Biller, who worked as managing counsel for Toyota's American operations from 2003 to 2007. "They did not have any respect for our laws."
Biller handled product liability suits while with the company. He claims that when Toyota received poor results in a vehicle rollover test, it ordered a new test in order to receive better results. According to Biller, the company also made a practice of concealing proof of safety problems, and did not disclose information it was obligated to produce during litigation.
"They were hiding evidence, concealing evidence, destroying evidence, obstructing justice," said Biller.
CLICK HERE TO WATCH AN EXCLUSIVE ABC NEWS INTERVIEW WITH BILLER
According to Biller, when he was preparing information that showed possible safety issues with Toyota vehicles to provide to plaintiffs, as required by law, his boss told him to remember the "golden rule." When Biller asked what the golden rule was, he claims, his boss said, "Don't @#$%&! the client."
Asked if he thought Toyota would lie to the federal government, Biller answered, "In my view, absolutely."
Biller also said that Toyota's gas pedal was not the real cause of random acceleration incidents. "It's the electronic throttle control," he said. Biller said he based his opinion on information he'd learned while at Toyota, but could not disclose the evidence because "that would be privileged information."
'Toyota Takes Its Legal Obligations Seriously'
Biller received a $3.9 million settlement when he left Toyota, and also signed a non-disclosure agreement. Toyota sued him in 2008, alleging that he had violated the non-disclosure agreement. Biller filed his own suit a year later.
About two years into his tenure, said Biller, he began experiencing mental issues, which he claimed was related to the stress of his internal battle with the company. "There was an onslaught of depression that I sustained while I was at Toyota," he said, but added that he believes he is much improved since leaving.
Toyota denies Biller's charges and says he is just a disgruntled former employee who is angry he lost his job.
In a statement, Toyota said Biller had left the company in 2007, and would not have any knowledge about current matters. "Mr. Biller continues to make inaccurate and misleading allegations about Toyota's conduct that we strongly dispute and will continue to fight against vigorously," said the statement. "Toyota takes its legal obligations seriously and works to uphold the highest professional and ethical standards."
Toyota also said Biller did not handle unwanted acceleration cases while he worked at the company. Biller disputes that, saying he worked as the managing attorney for Toyota on a sudden acceleration case involving Lexuses that was filed in 2005.
Click Here for the Blotter Homepage.
Copyright © 2010 ABC News Internet Ventures
Johnnyappleseed
Guy sounds like an attorney that chases ambulances.
lachica6
Not to worry Obama Motors is waiting for you. The Wheelchair on wheels. Out of no where comes this enormous recall, while obama motors is trying to sell its wheelchair. I find it very suspicious.
BeastyBoy
Your WAY too paranoid. All of Chrysler's latest engineering is coming from its big investor, Fiat, and they have some terrific product. Have you seen the cars in the movie Angels & Demons, that is what Fiat will bring to the US under the Chrysler flag. The local Chrysler dealers are ecstatic about this.
winston1
I would still but a Toyota or a Honda before investing in a GM car.
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msshay
I have always bought Pontiac, bought my first foreign car after Obama took over GM. Will never buy GM again.
Wallysmom
I've owned 2 Toyota's in my lifetime. My first car in 1975 was a Corolla that I beat the SH@! out of in college, followed by a Tercel which was impractical as a 2 door when I had my kids. I loved them. They were inexpensive and reliable but didn't have a lot of bells and whistles. The '75 had a plastic mat floor instead of carpeting and only an engine, radiator and a distributor under the hood. Since then, cars have become more complicated, simply to be more complicated. With shoe-horning in engines, the labyrinth of wiring, and 200 anti-locking, anti-coagulating, and anti-thinkafying of the automobile, along come problems. Basic is better. If Toyota (and American cars as well) worried more about the breaks than the butt warmer in the drivers seat, none of this would have happened.
paxmotion
Americans love to hate America. I've owned only American cars--mostly GM. The 70's and 80's (supposedly the bad years) it was Oldsmobile and Buick, and every one of them gave me fine service. Comfortable, started every day, never left me stranded, etc. I've never understood the bashing they took. I had a friend back in those days who had a Datsun B210 and it was in the shop more often than his wife's Chevy Vega (!!!). Another friend had his Nissan Maxima bought back because it was such a lemmon. Problems today are not unheard of whether you drive foreign or domestic.
The point is GM and Ford and Toyota and Honda and Nissan all build good cars--mostly. As we're seeing now with Toyota, sometimes they mess up. Hopefully when that happens they fix the problem.
I might someday buy a Toyota. I would never NOT buy a Toyota just because it's Japanese. Unfortunately there are plenty of Americans who would never consider a GM car because they hate the US so much that in their mind EVERY car GM makes is junk.
I just wish people in this country would fix whatever it is that makes them feel good about bashing The US.
It's plain depressing.
msshay
Let's face it, in America, whoever has the money is gonna get sued! Lawyers Rule!
Prashant Menon
Mass recalls have surely tainted the brand image of Toyota but i think its the American media hype that has really stirred up the company's reputation. Last year when American car manufacturers registered huge loses and Chevrolet almost going bankrupt, Toyota became the largest car manufacturer and held on to the no1 spot. Complete video on videocrux.com http://www.videocrux.com/video/19723/Pressure-builds-on-Toyota-chief-to-fac e-US-Congress
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