Toyota‘s settles frame rust lawsuit for up to $3.4B
Toyota has reached a settlement in a class-action lawsuit for trucks and SUVs with rusted frames.
Plaintiffs argued that the 2005-2010 Tacoma and 2005-2008 Sequoia were manufactured with insufficient corrosion protection, leaving the frames prone to premature failure.
The court battle is said to have involved 2.5 million internal documents and potentially affects up to 1.5 million vehicles.
The automaker denies the allegations but has reportedly agreed to inspect the vehicles and replace the frames if necessary. Attorneys representing plaintiffs suggest the replacement costs could cost up to $15,000. The settlement is said to be potentially worth up to $3.4 billion, however the actual payout will likely drop significantly as Toyota determines how many frames pass or fail inspection.
“The ultimate size of the settlement depends on a number of factors, including the valuation of the benefits offered under the settlement,” Toyota said in a statement cited by USA Today.