$287 Million Toyota Fuel Pump Nationwide Settlement Approved

Beasley Allen secured a $287 million settlement in the Toyota fuel pump class action case, representing 6.5 million class members.

“This settlement provides full relief to millions of consumers who unknowingly purchased vehicles with a defective fuel pump made by Denso and installed in Toyota vehicles,” said Beasley Allen attorney Dee Miles. “This settlement mandates that those fuel pumps be replaced by Denso and Toyota at no cost to the consumer and with a 15-year / 150,000-mile warranty on the replaced fuel pump. It is a complete fix for consumers with the fuel pump problem.”

In February 2020, the firm filed a lawsuit on behalf of Sharon Cheng as the plaintiff. The suit claimed that Toyota knowingly marketed and sold vehicles with faulty fuel pumps and neglected to recall all affected Toyota and Lexus models and model years.

In response, Toyota recalled some of its vehicles due to defective fuel pumps made by Denso. The recall later expanded to include 3.4 million Toyota and Lexus vehicles. 

In April 2020, faulty fuel pump maker Denso was added to the lawsuit by the plaintiffs. The class lawyers requested that more vehicles at risk of faulty fuel pumps be added to the settlement, resulting in almost 5 million vehicles being covered. Preliminary approval was granted in September, which allowed the implementation of the customer support program before final approval.

Settlement provisions include:

• Toyota agreed to offer customer support to 1.4 million vehicle owners and lessees not included in the previous recall.
• Denso fuel pump owners/lessees get free coverage for parts and labor for 15 years from the vehicle’s initial sale date.
• The benefit stays with the vehicle for 15 years, even if sold or leased to someone else.
• Toyota agreed to offer an extended parts warranty for the fuel pump kit recall. It lasts for 15 years or 150,000 miles, whichever comes first. This applies to 3.4 million recalled vehicles and 170,000 hybrid vehicles.
• Recall benefits extend to subsequent buyers/lessees with an extended warranty.
• Owners and lessees of affected vehicles get free towing and loaner cars during fuel pump repairs. Toyota agreed to make good faith efforts to provide loaner vehicles like the ones being repaired.
• There is an out-of-pocket expense reimbursement program, a reconsideration procedure in connection with the customer support program, and an extended new parts warranty.
• A special master will oversee the settlement agreement to handle any issues.

No objectors appeared during the final approval hearing at a Brooklyn, New York, federal courthouse, and Magistrate Judge James R. Cho of the Eastern District of New York overruled four written objections. 

Class members were represented by Beasley Allen Consumer Fraud & Commercial Litigation Section Head Dee Miles, Demet Basar (serving as co-lead counsel with Miles), Clay Barnett, Mitch Williams and Dylan Martin.

Additional settlement details are available at toyotafuelpumpssettlement.com. The case is Sharon Cheng et al. v. Toyota Motor Corporation et al., case number 1:20-cv-00629-WFK-JRC.