Toyota's $78.5 Million Settlement Over Airbag Control Units

Toyota, one of the world's leading automobile manufacturers, has agreed to a settlement regarding certain ZF-TRW airbag control units (ACUs) installed in some of their vehicles. The settlement, which was reached in a class action lawsuit, totals $78.5 million in cash and credits. The lawsuit alleged that the ZF-TRW ACUs in certain Toyota vehicles were susceptible to electrical overstress, which could potentially lead to the failure of airbags and other safety features during a collision. Toyota has consistently denied these allegations but has agreed to the settlement to resolve the case.

A Closer Look at the $78.5 Million Settlement

The settlement amount of $78.5 million includes cash payments and credits to the class members. The cash payments will be made to those who have incurred out-of-pocket expenses related to the recall of the affected vehicles. The credits, on the other hand, will be applied towards the purchase of new parts or services from Toyota.

The settlement also includes an Extended New Parts Warranty, a loaner vehicle program, and other benefits. The Extended New Parts Warranty will be provided to vehicles that complete the recall. The loaner vehicle program is designed to provide a temporary vehicle to those who are unable to use their vehicle due to the recall.

Important Dates to Remember

The Fairness Hearing for the settlement is scheduled for November 16, 2023. At this hearing, the court will consider the fairness of the settlement and determine the approval of attorneys' fees, expenses, and service awards.

The deadline to file a claim is December 16, 2026.

Who Are the Class Members?

The class members in this settlement are current and former owners and lessees of certain Toyota vehicles that contain the ZF-TRW ACUs. The vehicles in question include various models of the Toyota Corolla, Avalon, Tacoma, Tundra, Sequoia, and Corolla Matrix produced between 2011 and 2019.

Class members have the option to file a claim for reimbursement of certain reasonable out-of-pocket expenses related to the recall, which was issued on January 17, 2020. The settlement also includes a potential residual distribution payment for all class members and an inspection program for vehicles involved in a frontal crash where the seatbelt pretensioner and/or airbag did not deploy.

However, certain individuals and entities are excluded from the class. These include Toyota, its officers, directors, employees, and outside counsel; its affiliates and affiliates' officers, directors, and employees; its distributors and distributors' officers and directors, and Toyota's Dealers and their officers and directors.

What Can Class Members Claim?

As part of the settlement, class members are eligible for cash payments and credits. The cash payments will be made to those who have incurred out-of-pocket expenses related to the recall of the affected vehicles. The credits, on the other hand, will be applied towards the purchase of new parts or services from Toyota.

In addition, the settlement provides for an Extended New Parts Warranty, a loaner vehicle program, and other benefits. The Extended New Parts Warranty will be provided to vehicles that complete the recall. The loaner vehicle program is designed to provide a temporary vehicle to those who are unable to use their vehicle due to the recall.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim the reward. A copy of the documentation to verify expenses is required.

Why Is There a Class Action Settlement?

The class action settlement arises from a lawsuit alleging that the ZF-TRW ACUs in certain Toyota vehicles are susceptible to electrical overstress, which could potentially lead to the failure of airbags and other safety features during a collision. Toyota has consistently denied these allegations but has agreed to the settlement to resolve the case.

The settlement is designed to compensate those who have incurred out-of-pocket expenses related to the recall of the affected vehicles. It also provides for an Extended New Parts Warranty, a loaner vehicle program, and other benefits to the class members.