Lawsuits against Toyota Motor Corp. are mounting. Believe it or not, the total cost of the recall, linked to faulty gas pedals, is going to push well past $2 billion.
At this time, there are at least 40 class action suits filed against Toyota. Along with this, there are 12 individual suits claiming injury or death related to this issue. Attorneys working on these cases feel that many more are on the way.
A February 4, 2009 earnings call showed just how much money Toyota is going to lose. The company will have to spend roughly $1.2 billion on warranty repairs, as well as more nearly $900 million in lost sales.
Of course, the lawsuits are going to cost the company even more money. University of Richmond Law Professor, Carl Tobias, had this to say in a recent interview: It’s important to distinguish the personal-injury cases from the product-disappointment or lemon cases. The latter are worth a lot less, in terms of payment.”
It will be interesting to see how many more personal injury cases are filed. Only time will tell. Check back for updates!