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Lawyers with nearly two dozen firms around the country hope to consolidate their claims that Toyota Motor Corp.’s recalls have cost customers billions of dollars.
NEW YORK – Lawyers with nearly two dozen firms around the country hope to consolidate their claims that Toyota Motor Corp.’s recalls have cost customers billions of dollars.
P. Tim Howard, a Northeastern University law professor leading the group seeking class-action status for numerous existing lawsuits, said Wednesday that the more than 8 million vehicles recalled by Toyota have collectively lost more than $2 billion in resale value because of the recalls.
Kelley Blue Book and other automotive guides have warned that the recalls begun in November are eroding the value of Toyotas. The car appraisal guide estimated Wednesday that the resale value of recalled cars and trucks will fall another 1.5 percent. That’s on top of a drop of 1 percent to 3 percent Blue Book analysts forecast last week.
Howard, who litigated against tobacco companies in the 1990s, also said he will seek damages for Toyota drivers who have decided not to use their recalled vehicles, although the value is more difficult to determine.
Dozens of so-called economic-loss cases have been filed around the country on behalf of Toyota owners who believe the recalls have hurt the value of their vehicles, Howard said.
At a hearing scheduled March 25 in U.S. District Court in San Diego, a panel of judges will consider whether to consolidate the lawsuits into a single national class action.
Richard Cupp, a law professor at Pepperdine University in Malibu, Calif., said attorneys in economic-loss cases that can involve many plaintiffs often try to consolidate their claims so they can pool resources and reduce the burden on the legal system.
“If plaintiffs lawyers can band together, that gives them a lot more resources to pool their strengths and … fight closer on the same terms than a big manufacturer like Toyota could,” he said.
Toyota spokesmen did not immediately return phone messages seeking comment.
Toyota has recalled nearly 8.5 million vehicles since November around the globe for problems that include floor mats that can get tangled with the gas pedal and gas pedals that can stick, causing cars to accelerate suddenly.
The recalls have prompted a flurry of lawsuits on behalf of drivers who say they were injured in Toyota accidents, as well as by drivers alleging the problem makes their vehicles worth less than they would have been.
The recalls have drawn interest from Congress, where lawmakers are looking into how the company handled the recalls and whether the government properly investigated numerous complaints.
Read more on AP via Yahoo! News
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