US court to rule on Toyota accelerator lawsuits

[DainBramaged]

Toyota faces a first courtroom challenge Thursday when federal judges decide whether angry car owners can bring a multi-billion-dollar suit against the Japanese automaker.

A group of law firms from 20 US states, dubbed the Toyota Action Consortium, is suing to recoup losses in the resale value of Toyota vehicles due to deaths and injuries blamed on accelerator pedal malfunctions.

Tim Howard, a Northeastern University law professor who is leading the charge against the world's biggest automaker, said the case could cost Toyota 40 billion dollars or more.

The suit does not take into account motorists who have been injured and is expected to be the largest legal battle of its kind against a single automaker.

"This is the worst malfeasance in the car industry since its inception in the 1890s," Howard said. "This is like Tiger Woods destroying his reputation."

The automaker has enjoyed a stellar reputation as the world's top global auto seller and ranked among Forbes' leading companies.

But in recent months, Toyota has had to recall more than eight million vehicles worldwide due to problems with sudden acceleration, which have been blamed for 58 deaths.

"This is a problem everywhere for Toyota," Howard said. "People have lost thousands in value for doing nothing that was their fault."

In addition to a myriad of class-action lawsuits over plummeting car values, the consortium of lawyers has added new charges of racketeering under a federal law that was enacted in 1970 to bring down the mafia.

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