Understanding the Toyota Class Action Lawsuit What You Need to Know header page

Understanding the Toyota Class Action Lawsuit: What You Need to Know

Toyota has long been respected for its commitment to vehicle safety, but the recent Toyota class action lawsuit has called its airbag systems into question. This Toyota lawsuit, involving certain models from 2011 to 2019, claims that defective airbag control units (ACUs) might fail to deploy in crashes, putting drivers and passengers at risk. To address these concerns, Toyota has agreed to a $78.5 million settlement, offering compensation and support to affected owners.

At Sparrow, we specialize in helping consumers navigate the complexities of class action lawsuits, from consumer protection issues such as the Sierra Mist lawsuit to vehicle safety cases like this one. Our expertise in claims management ensures that affected Toyota owners understand their rights and have access to the resources they need for a smooth claims process.

Drawing on our experience, we’ve created this guide to walk you through the key details of the Toyota airbag settlement—from eligibility and claim submission to potential compensation options.

Let’s get started!

Overview of the Airbag Defect

The Toyota class action lawsuit addresses allegations that certain Toyota models were equipped with defective ZF-TRW airbag control units. These units, responsible for controlling airbag deployment, were found to be susceptible to an electrical overstress (EOS) condition. This defect prevents airbags from deploying during collisions, putting drivers’ lives at risk. 

The Airbag Control Unit Defect

The Airbag Control Unit Defect homepage

On January 17, 2020, Toyota Motor Corporation issued a recall for certain vehicles to address airbag issues tied to the ZF-TRW ACU. This component was vulnerable to electrical overstress, which could prevent the airbags from activating in an accident. Reports suggest that Toyota’s ACU defect may have affected millions of vehicles globally, sparking safety concerns that prompted the automaker to act with a major settlement.

Potential Risks and Toyota’s Response

Drivers and passengers in vehicles with the defective ACUs faced the risk of airbag failure during serious collisions, which could lead to severe injuries. Although Toyota has not admitted any wrongdoing, the company agreed to a $78.5 million settlement to cover various compensations for affected vehicle owners of Toyota and to fund a thorough inspection program for vehicles involved in the recall.

Final Settlement Approval and Key Terms

In a recent ruling on November 28, 2023, United States District Judge John A. Kronstadt issued a final judgment approving the settlement. The case, formally known as In re ZF-TRW Airbag Control Units Products Liability Litigation (Case No. 2:19-ml-02905-JAK-MRW), consolidated multiple individual lawsuits alleging defects into a multidistrict litigation (MDL). The MDL, which encompasses 20 member cases, were all outstanding complaints in the Toyota class action lawsuit. The judge’s approval certified the settlement class and appointed Kroll Settlement Administration as the Notice Administrator, responsible for managing communications and claims. Patrick Juneau of Juneau David APLC was also appointed as the Special Administrator overseeing the settlement fund, which will ensure the proper distribution of funds to eligible claimants​.

Key aspects of the court’s judgment include:

Final Settlement and Key Terms homepage5

  • Class Certification and Administration: The court certified the settlement class, which allows eligible Toyota owners with defective ACUs to participate in the settlement benefits.
  • Attorney Fees and Service Awards: The court awarded the settlement lead counsel $25 million in attorneys’ fees plus $472,730.40 in reasonable expenses. Each of the eleven class representatives received a $2,500 service award for their roles in the litigation.
  • Injunction on Future Claims: The court issued a permanent injunction barring any class members who did not opt-out from pursuing future claims related to this defect against Toyota. This measure protects Toyota from further lawsuits on this specific issue by the class members covered in this settlement.
  • Residual Distribution Payment: As part of the settlement, Toyota will provide residual payments of up to $250 to all eligible class members. This distribution is intended for those with impacted vehicles, even if they did not incur specific out-of-pocket costs.

This judgment paves the way for affected Toyota owners to file their claims and access settlement benefits, which include reimbursement for out-of-pocket expenses, extended warranty coverage for airbag parts, and a comprehensive vehicle inspection program to prevent future airbag issues​.

Eligibility for the Settlement

Determining your eligibility is a crucial first step to securing compensation from the Toyota class action lawsuit. Here’s how to know if your vehicle qualifies:

Eligibility for Settlement homepage

Affected Toyota Models and Production Years

Not all Toyota vehicles are included in this settlement. The affected model years are:

  • 2011–2019 Toyota Corolla
  • 2011–2013 Toyota Corolla Matrix
  • 2012–2018 Toyota Avalon
  • 2013–2018 Toyota Avalon HV
  • 2012–2019 Toyota Tacoma
  • 2012–2017 Toyota Tundra
  • 2012–2017 Toyota Sequoia

Checking Your Vehicle Identification Number (VIN)

Toyota has set up a VIN lookup tool on the official settlement website to help owners confirm their eligibility. To use this tool, you’ll need your VIN, a unique 17-character code located on the driver’s side dashboard or driver’s side door post. Enter your VIN into the lookup tool to verify if your vehicle is covered by the recall.

  • Recall Documentation: If your vehicle is part of the Toyota recall, ensure that you have relevant documentation on hand, especially if you previously had to pay out-of-pocket for airbag repairs. These records will be essential for filing a reimbursement claim under the settlement.
  • Residency Requirements: This settlement covers Toyota owners and lessees within the United States, including U.S. territories such as Puerto Rico and the District of Columbia. Current and former owners and lessees are eligible, provided they still own or lease the vehicle in question or had ownership as of July 31, 2023.

If you’re still uncertain, contacting Sparrow or consulting the settlement website can clarify your eligibility, ensuring you don’t miss this opportunity to claim compensation.

Settlement Compensation and Benefits

The Toyota class action lawsuit settlement offers multiple forms of compensation aimed at reimbursing affected owners and providing ongoing protection against future airbag issues. Note that the objection deadline date to participate in the fairness hearing passed on October 20, 2023, so settlement is your only option if this is the first time you are hearing about this.

Here’s an in-depth look at the benefits included in the settlement package:

Settlement Compensation and Benefits homepage

Reimbursement for Out-of-Pocket Expenses

Owners of recalled vehicles may have incurred various expenses to address airbag design defects before Toyota issued this settlement. The settlement provides reimbursement for the following out-of-pocket expenses:

  • Airbag Repairs: If you previously paid for repairs to the airbag control unit, you can claim reimbursement.
  • Transportation Costs: This includes reasonable towing charges if you had to transport your vehicle to a dealership.
  • Rental and Alternative Transportation Costs: If you needed a rental car while your vehicle was in for airbag repairs, submit receipts for rental fees.
  • Childcare Costs: You are also eligible for reimbursement for any reasonable childcare expenses you incur while taking your vehicle in for recall repairs.
  • Lost Wages: If you missed work to drop off or pick up your vehicle from a dealership, you may claim compensation for lost wages, provided you have proper documentation.

Keep in mind that receipts, invoices, or other proof of expenses are essential for the claims process. Documenting all eligible expenses will help maximize your reimbursement amount.

Extended Warranty on New Airbag Parts

To address long-term concerns with the airbag control units, Toyota has extended the warranty coverage for newly installed airbag parts in vehicles that have completed the recall. Under this Extended New Parts Warranty, Toyota will cover future repairs related to the ACU defect for up to 12 years from the date of recall completion. This warranty covers parts and labor, providing peace of mind and protecting you from future expenses linked to the original airbag issue.

Residual Distribution Payment

Residual Distribution Payment homepage

A unique aspect of this settlement is the residual distribution payment. This benefit is available to all eligible Toyota owners, even if their vehicle was not part of the initial recall. Once all eligible reimbursement claims are paid, any remaining settlement funds will be distributed on a per-capita basis, providing eligible class members with up to $250. To qualify for this residual payment, you simply need to submit a valid claim form.

Vehicle Inspection Program and Future Repairs

As part of the Toyota settlement, the company has committed to implementing a comprehensive inspection program for affected vehicles. This program will offer additional vehicle inspections that may develop future airbag-related issues. Owners can bring their vehicles to authorized Toyota dealers for inspection and repair if they experience ACU malfunctions or airbag warning lights related to the defect.

This commitment underscores Toyota’s pledge to ongoing safety monitoring and the importance of regular maintenance for impacted vehicles. Eligible Toyota owners can expect Toyota’s full support in addressing future airbag issues.

Steps to File a Claim for the Toyota Settlement

Filing a claim for compensation from the Toyota class action lawsuit settlement is a straightforward process. Here’s a step-by-step guide:

Timeline of Action homepage

1. Gather Required Documentation: Collect any records related to airbag repairs, towing, rental car expenses, or lost wages. Having your VIN handy will also help expedite the claim process.

2. Verify Your Eligibility: Use Toyota’s VIN lookup tool on the official settlement site to confirm that your vehicle is covered. This is essential to ensure your claim will be processed smoothly.

3. Complete the Online Claim Form: Visit the settlement website to complete the claim form. You’ll need to provide basic information about your vehicle, contact details, and supporting documentation. Be sure to double-check your entries for accuracy.

4. Submit the Claim Form by the Deadline: To receive compensation, your claim form must be submitted online or postmarked by December 16, 2026. Missing this deadline will forfeit your right to reimbursement.

5. Track the Status of Your Claim: Once submitted, you can monitor your claim’s progress through the settlement website. If there are issues with your claim, Sparrow can provide additional guidance to help ensure timely compensation.

Key Takeaway

Toyota’s recent $78.5 million class action settlement over defective airbag control units (ACUs) has sparked new attention on vehicle safety. This Toyota class action lawsuit, involving models from 2011 to 2019, addresses allegations that faulty ACUs may fail during crashes, leaving drivers and passengers unprotected. While Toyota has not admitted liability, the settlement offers compensation for prior repairs, extended warranties, and future inspections to restore trust and safety.

Thinking about filing a claim? Make sure you’re prepared: Gathering detailed repair documentation and understanding eligibility can be challenging. This Toyota class action lawsuit underscores the complexities of vehicle safety claims, where reimbursement often depends on comprehensive records and proof of prior out-of-pocket expenses. As Toyota begins the process of making amends, affected owners will want to watch closely to secure their entitled compensation.

For more updates on this and other class actions, Sparrow’s blog is a valuable resource. We’re here to help you navigate every step of the claims process—whether it’s understanding your rights in a Toyota settlement or tracking the latest class action developments. Reach out to Sparrow today to make sure you’re covered.