Toyota (TM) Has To Pay More Than $3 Billion To Settle This Lawsuit

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Court filings revealed that a settlement with Toyota was reached on October 31st where Toyota will shell out $3.4 billion over trucks that were subject to corrosion and lacked adequate rust protection. This estimates the value of replacing the frames of the trucks at $15,000 per vehicle.

The settlement settles a class action lawsuit by U.S. Toyota pickup truck and SUV owners and applies to Tacoma trucks made from 2005 to 2010, Sequoias from 2005 to 2008 and Tundras from 2007 to 2008.

Under the settlement, Toyota will inspect vehicles for 12 years from their initial sales or lease date in order to decide if the owner is eligible to have their frame replaced or if they are entitled to a reimbursement.

Disclaimer: We have no position in Toyota Motor Corporation (NYSE: TM) and have not been compensated for this article.