And the bad news continues for automaker Toyota.
The latest? The Associated Press has discovered that 89 class action lawsuits have been filed nationwide as of Monday, March 8. One of the leading attorneys, Tim Howard, law professor at Northeastern University, said that the number of owners claiming economic damages due to recalls could reach 6 million. He estimates that if each receives an award of $500, then Toyota would have to pay out more than $3 billion in economic loss damages alone. This does not include potential payouts for wrongful death and injury lawsuits which could be in the tens of millions of dollars each.
The number of lawsuits against Toyota are so high, a panel of federal judges in San Diego is deciding whether to consolidate all the cases into one jurisdiction. After this is decided, then a judge will determine if claims being filed nationwide can be combined into a single legal action.
All of this is bad enough for Toyota. However, it could end up paying out even more if a judge rules that it is liable for attorneys’ fees as well.
It is said that corporations facing what Toyota is commonly settle rather than risk large losses in a trial. Ford did that in 2008 to compensate 800,000 Explorer owners who sued because of rollover concerns. The settlement gave owners a voucher of between $300 and $500 to buy new Ford products.
via Detroit News
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