Toyota Reaches $20 Million Settlement To Resolve Prius Stalling Claims

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Toyota Prius Stall Defect Class Action Settlement Overview: 

• Who: Toyota reached a $20 million settlement agreement with Prius drivers. 
• Why: The agreement settles claims that Toyota sold Prius vehicles that were prone to stalling due to defective inverter components.
• Where: The class action lawsuit was filed in California federal court.

Toyota has reached a $20 million settlement agreement with car buyers who claimed the company’s 2010-2014 Prius vehicles were prone to stalling.

The settlement includes reimbursements for repair or replacement of defective parts and related towing and rental car costs, according to a motion for preliminary approval. 

Toyota will also extend the warranty coverage for affected vehicles for 20 years from the time they were first driven and provide free towing and rentals for those that still require parts or replacements.

“The proposed settlement provides real, substantial benefits to class members in an easy-to-understand, straightforward manner, without subjecting class members to any undue burden with respect to claiming or receiving those benefits,” the motion states.

Stalling Issues Caused By Defective Inverter Components That Toyota Intentionally Hid, Plaintiffs Claim

Plaintiffs alleged in a consolidated complaint filed in 2018 that Toyota had intentionally hid issues with stalling in its 2010-2014 Prius vehicles, Law360 reports. 

The stalling issues were caused by defective inverter components that caused the vehicles to stall when traveling at a high rate of speed, according to the class action lawsuit. 

Plaintiffs argued the defect also affected the Priuses’ fuel efficiency, one of the primary reasons many consumers purchased the vehicles. 

An attempt by Toyota to push the claims to arbitration was unsuccessful, leading to settlement talks that began in June 2020 and lasted until Nov. 15, when the current agreement was reached, Law360 reports.

“Every material issue underwent intensive scrutiny and discussion before it became part of the settlement agreement, and the time, effort and resources expended on those efforts paid off,” drivers said. 

Despite the settlement, Toyota maintains it is innocent of the allegations and any legal liability that goes with it, according to the motion. 

A separate class action lawsuit was filed against Toyota in October by Prius Prime owners who claim the vehicles were manufactured with HVAC systems which produce a foul smell. 

Do you believe Toyota reached a fair settlement with Prius owners? Let us know in the comments! 

The plaintiffs are represented by Jeffrey L. Fazio and Dina E. Micheletti of Fazio Micheletti LLP; Amnon Z. Siegel and Casey B. Sypek of Miller Barondess LLP, Paul R. Kiesel; Jeffrey A. Koncius and Nicole Ramirez of Kiesel Law LLP; Charles J. LaDuca of Cuneo Gilbert & LaDuca LLP; Donald R. Pepperman and Emily R. Stierwalt of Waymaker LLP; and William M. Audet, Clint Woods and David Kuang of Audet & Partners LLP.

The Toyota Prius Stall Defect Class Action Lawsuit is Ryan-Blaufuss, et al. v. Toyota Motor Corp., et al., Case No. 8:18-cv-00201, in the U.S. District Court for the Central District of California. 

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• Geico To Pay $24M To Settle Claims It Short-changed Customers With Totaled Cars
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