Texas Attorney General Greg Abbott today announced a $29 million national settlement agreement with Toyota Motor Corp. and its North American subsidiaries. Today's settlement resolves a multistate investigation into Toyota's actions in the wake of the discovery that certain vehicle models were susceptible to sudden, spontaneous accelerations. Specifically, the states investigated whether Toyota adequately and promptly disclosed that its voluntary recalls had safety implications for vehicle owners of its most popular models, including the Camry and Lexus sedans, the Tundra and Tacoma trucks and the Prius hybrid.
Under the agreement negotiated by Texas and 29 other states and territories, Toyota, among other things, is required to enhance its safety compliance procedures. The $29 million national agreement also establishes a customer restitution fund, along with $1.14 million in civil penalties and $217,000 in attorneys' fees for the State of Texas.
The agreement also requires that Toyota set aside at least $5 million for the
restitution fund, which will be available to customers who had out-of-pocket
expenses - such as rental cars or taxi fees - as a result of recalls in late
2009 and early 2010.
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