State Farm Goes After Toyota To Pay For Acceleration Lawsuits

By William Finch on April 18, 2010, 10:14 am Posted in Business News

Toyota (NYSE:TM) still has not recovered from its recall of 5 million cars. A number of consumers have filed lawsuits against the Japanese auto-maker. The lawsuits attempt to recover medical costs or losses that resulted from problems with sticky accelerator pedals. Toyota admitted to the problems and has fixed many of the pedals from the floor mats.

Class Action Lawsuits Against Toyota

Insurance companies are looking for a way to recover losses they suffered as a result of the floor mat and accelerator problems. Several major insurance companies have filed lawsuits against the Japanese auto maker. State Farm was the latest company to join in on several class action lawsuits. Toyota already faces many personal injury and class action lawsuits. A federal court decided to consolidate the cases to make the litigation process easier.

The problems with the accelerator resulted from materials on the floor mat. When the driver depressed the pedal, it could stick to the floor mat. When the driver experienced the pedal become entangled with the floor mat, uncontrolled acceleration could be the result.

Lower Insurance Premiums

State Farm and the other companies who have joined the lawsuit say that they have lost millions in dollars in claims already. A State Farm spokesperson believes that if the court orders the car company to recoup some of the money lost, consumers can benefit from lower insurance premiums.

 

Toyota has unveiled its own response to the accelerator claims, including the introduction of the SMART team. The Swift Marketing Action Response Team gets sent to investigate rumors of accelerator problems. The SMART teams have debunked several cases of fraudulent uncontrolled acceleration claims. Critics have charged that this new defensive strategy was designed solely to discredit car owners. A company spokesperson stated that the company has a right to defend itself against fraudulent claims.

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2. Critics Say That Toyota’s Smart Team Designed To Discredit Complaints
3. Toyota Recall: Lawyers Could Be Busy With Gas Pedal Class Action Suits
4. Toyota Exec Erv Miller Warned Mgmt “Need To Come Clean” About Recall
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