Class action alleges Toyota sold vehicles with defective UA80 transmissions

Toyota class action lawsuit overview:

• Who: Plaintiff James LeBoutheller filed a class action lawsuit against Toyota Motor Sales U.S.A. Inc., Toyota Motor North America Inc. and Toyota Motor Corporation.
•  Why: LeBoutheller claims Toyota knowingly sold and leased vehicles with defective UA80 eight-speed automatic transmissions.
• Where: The Toyota class action lawsuit was filed in Texas federal court.

A new class action lawsuit alleges Toyota knowingly sold and leased vehicles equipped with defective UA80 eight-speed automatic transmissions that are prone to premature failure and unsafe driving behavior. 

LeBoutheller claims he purchased a new 2020 Toyota Camry XSE and later experienced abnormal transmission noise. He says Toyota agreed to provide a replacement transmission but refused to cover installation costs, allegedly leaving LeBoutheller with thousands of dollars in expenses.

According to the complaint, Toyota was aware for years that the transmission assembly and related software contained defects but failed to disclose those issues to consumers, continued marketing the vehicles as reliable and refused to provide adequate repairs once problems emerged. 

The class action lawsuit claims consumers overpaid for vehicles that lost value and required costly transmission replacements.

LeBoutheller argues two interrelated defects affect the transmission assembly. The first is a mechanical defect that causes excess heat buildup inside the transmission, burning transmission fluid and accelerating internal wear. 

The second alleged defect involves defective software that forces premature upshifts and torque-converter clutch engagement, placing excessive stress on transmission components and causing them to deteriorate faster than expected.

“The UA80 transmissions have been known to be an issue for several years,” the Toyota class action lawsuit says, adding that Toyota nevertheless “continue[d] to market and advertise that their vehicles and Transmission Assemblies are safe.”

The class action lawsuit asserts Toyota knew the defective transmission would reduce vehicle longevity and resale value but failed to warn buyers before purchase.

Toyota class action says automaker ignored years of warnings

The Toyota class action lawsuit alleges the automaker ignored years of internal data, consumer complaints, dealership reports and government safety submissions warning that UA80 transmissions were failing prematurely. 

According to the complaint, Toyota had known of the defect through pre-sale durability testing, National Highway Traffic Safety Administration complaints and numerous technical service bulletins addressing transmission noise, harsh shifting and failure.

Despite this knowledge, the class action lawsuit claims Toyota failed to issue a recall, offer a permanent fix or reimburse consumers for repair costs. The complaint further alleges Toyota prioritized fuel efficiency over durability by adopting software programming that accelerated transmission wear.

Instead, LeBoutheller alleges Toyota routinely told owners their vehicles were operating as intended or denied warranty coverage once vehicles exceeded mileage limits, even when problems were reported earlier.

LeBoutheller seeks to represent a nationwide class of current and former owners and lessees of affected Toyota and Lexus vehicles, as well as an alternative Nevada subclass.

He demands a jury trial and seeks damages, restitution, injunctive relief and an order requiring Toyota to repair, recall or replace defective transmissions.

A class action lawsuit filed in early this year alleges Toyota failed to disclose to consumers who purchased or leased model year 2024 Toyota Corolla vehicles.

Do you believe Toyota concealed known transmission defects from consumers? Let us know in the comments.

The plaintiff is represented by Bruce W. Steckler and Austin P. Smith of Steckler Wayne & Love PLLC and Stephen R. Basser and Samuel M. Ward of Barrack, Rodos & Bacine.

The Toyota class action lawsuit is LeBoutheller v. Toyota Motor Sales U.S.A. Inc., et al., Case No. 4:25-cv-01389, in the U.S. District Court for the Eastern District of Texas.

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