Toyota Prius defective inverter $20M class action settlement

Update:

• This class action settlement was granted final approval on Feb. 3, 2023.

• Let Top Class Actions know when you receive a check in the comments section below or on our Settlements & Payouts Facebook group.

Toyota agreed to pay $20 million as part of a settlement to resolve class action lawsuit claims its Prius vehicles were equipped with defective inverter and related Intelligent Power Modules (IPMs) that failed prematurely.

The Toyota settlement benefits a nationwide class of those who owned or leased 2010 to 2015 Prius vehicles or 2012 to 2017 Prius V vehicles as of May 19, 2022. The vehicles included in the settlement were subject to safety recalls E0E, F0R, J0V and/or 20TA10.

Toyota is an automotive company that offers a number of gas- and electric-powered vehicles. One of its most iconic hybrid vehicles is the Prius, which comes in different models and designs such as the Prius C and the now-retired Prius V.

There have been several recalls of Prius vehicles due to faulty inverters and IPMs due to concerns these items could cause unexpected “limp” mode. Despite these recalls, drivers took legal action due to these concerns, arguing Toyota knew its vehicles were equipped with defective inverters but still forced owners and lessees to foot the bill for costly repairs.

Toyota hasn’t admitted any wrongdoing but agreed to resolve these allegations with a $20 million class action settlement.

The Prius class action lawsuit settlement offers several benefits. 

Monetary settlement benefits include repair reimbursements and a potential redistribution check. Class members can be reimbursed for Prius inverter and IPM replacements or repairs done before the effective date of the settlement. This includes repair-related costs such as car rentals, towing charges and more. 

If money remains in the Prius lawsuit settlement fund after these repairs are reimbursed, all class members could collect a redistribution check of up to $250. If leftover funds are not enough to warrant redistribution checks, the remaining money will be donated to Texas A&M University’s Transportation Institution for program funding.

The settlement also includes non-monetary benefits: a Customer Confidence Program and a Loaner/Towing Program. The Customer Confidence Program extends the inverter and IPM warranty on class vehicles to cover future repairs. The Loaner/Towing Program will cover a loan vehicle and/or towing related to repairs under the Customer Confidence Program.

The deadline for exclusion and objection was Oct. 26, 2022.

The final approval hearing for the Toyota Prius class action lawsuit settlement took place Jan. 13, 2023. 

The deadline to file a claim for out-of-pocket expenses and redistribution is May 12, 2023. Class members only need to file a claim for redistribution if they did not receive a postcard advising their eligibility.

The customer confidence and loaner/towing program deadline is March 7, 2023.

The reimbursement claim form deadline is June 6, 2023.

Other settlement benefits are available on the settlement effective date of March 6, 2023.

Who’s Eligible

The settlement benefits a nationwide class of those who owned or leased 2010 to 2015 Prius vehicles or 2012 to 2017 Prius V vehicles as of May 19, 2022. The vehicles included in the settlement were subject to safety recalls E0E, F0R, J0V and/or 20TA10.

Potential Award

Varies

Proof of Purchase

Evidence supporting an out-of-pocket claim; for example, proof of ownership of a subject vehicle, a receipt, invoice, credit card statement, canceled check or a sworn statement establishing the nature and amount of the expense for repairing or replacing an IPM or inverter or an associated tow or rental car.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

Customer Confidence and Loaner/Towing deadline: 03/07/2023

Reimbursement claim form deadline: 06/06/2023

Registration and reimbursement claim form deadline: 05/12/2023

Case Name

Remy McCarthy, et al., v. Toyota Motor Corp., et al., Case No. 8:18-cv-00201-JLS-KES, in the U.S. District Court for the Central District of California

Final Hearing

01/13/2023

Settlement Website

ToyotaPriusInverterSettlement.com

Claims Administrator

Prius IPM Settlement Notice Administrator
c/o Kroll Notice Administration
P.O. Box 5324
New York, NY 10150-5324
833-942-3997

Class Counsel

Jeffrey L Fazio
Dina E Micheletti
FAZIO MICHELETTI LLP

Amnon Z Siegel
MILLER BARONDESS LLP

Defense Counsel

John P Hooper
KING & SPALDING LLP