Toyota Settles Class Action Lawsuit

Christina Cole

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Toyota Motor Sales USA Inc. has come to a tentative agreement to settle a class action lawsuit by the owners of select Toyota and Lexus models whom made complaints that their engines were damaged by oil sludge. A Louisiana federal judge is expected to give final approval to the settlement on February 7, said Sam Butto, spokesman for Lexus.

The settlement applies to owners of specific 1997-2002 model year vehicles, like the Camry, some of which may have been damaged by engine oil gel and/or sludge.

In 2002, Toyota launched an expanded protection plan to cover any mechanical problems with the vehicles due to the oil sludge but some consumers made complaints that it wasn't sufficient and then sued the company.

"What the court settlement is doing is copying what we've already been doing the last four years," Butto said.
Under the terms of the proposed nationwide settlement, the automaker will reimburse vehicle owners for the cost to repair oil sludge damage as well as other incidental costs for up to eight years from the date their vehicle was sold or leased.

The vehicle owners must have made reasonable efforts to keep up maintenance of their car, such as regular oil changes.