Toyota to Pay Record Fine, but says “we did not violate safety regulations”

20 April 2010 — Toyota Motor Corp. agreed to pay a record $16.4 million fine that the National Highway Traffic Safety Administration (NHTSA) imposed earlier this month after finding that Toyota waited four months to report sudden acceleration defects in its vehicles.

But in a written statement, Toyota denied that it violated safety regulations:

“We agreed to this settlement in order to avoid a protracted dispute and possible litigation, as well as to allow us to move forward fully-focused on the steps to strengthen our quality assurance operations,” Toyota said. “We regret that NHTSA tentatively concluded that they should seek a civil penalty.”

The payment could bolster claims that Toyota committed fraud and racketeering, both identified in numerous lawsuits. It also could aid plaintiffs attorneys in obtaining discovery in the cases.

The federal judge overseeing nearly 200 lawsuits filed against  Toyota has also appointed four lawyers as temporary lead counsel for all the cases and set May 13 as the first scheduling hearing.

For the full article from the National Law Journal click here.