The first in a continuing series about the ongoing Toyota recalls.
Orange County DA Tony Rackauckas
California Orange County’s District Attorney, Tony Rackauckas, has sued the U.S. sales department of Toyota Motor Corp. for deceptive business practices earlier today. Rackauckas, in the suit, alleges that Toyota sold thousands of cars when they knew the vehicles had problems with the accelerator and hid the defect from consumers. Filed under the Unfair Business Practices Act, the suit is asking for a fine of $2,500 per breach. The suit also seeks to keep Toyota from selling further defective cars.
“We demand to know: Did Toyota, in their relentless pursuit to become the No. 1 carmaker in the United States, put profits over people?” Rackauckas asked in a USA Today article.
Toyota has been hit by dozens of civil and class-action lawsuits over the past several months since the company recalled over 8 million cars worldwide due to faulty accelerators. CBS has estimated the total cost of the lawsuits may total over $3 billion.
However, this action represents the first time a county or state has filed suit against the troubled car company, and could be the most dangerous suit yet. A successful lawsuit by Orange County could open up possibilities from lawsuits from other states.
Because of the California suit, Toyota may face even more legal pressure from Connecticut, where earlier this week three Toyota Camrys sped out of control and crashed in separate incidents. An elderly man was killed in one of the accidents.
Two of the vehicles, both 2007 Camrys, were under recall, while the third vehicle is reportedly a 2006 Camry.
Connecticut Attorney General Richard Blumenthal has already begun an investigation into Toyota’s response to the crashes. Depending on that investigation, Connecticut may be the next state to press charges against the world’s number one car manufacturer.
Toyota is also under investigation by the House Oversight Committee and a Federal Grand Jury for it’s response to car crashes.
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