Law firms seek class action suit against Toyota, says vehicles have lost billions in value

Law firm group seeks national suit against Toyota

NEW YORK — A group of nearly two dozen law firms around the country will try to bring a class action lawsuit against Toyota Motor Corp., alleging its vehicles have cost customers billions of dollars in lost value in the wake of massive recalls.

P. Tim Howard, a Northeastern University law professor leading the group, said Wednesday the more than 8 million vehicles recalled by Toyota have collectively cost their owners more than $2 billion in lost resale value.

Kelley Blue Book and other automotive guides have warned that Toyota’s recalls are eroding the value of its vehicles. On Wednesday, the car appraisal guide estimated that the resale value of recalled cars and trucks will fall an additional 1.5 percent — that’s on top if a 1 percent to 3 percent decline that 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. He said the group will also seek punitive damages.

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. The group has a hearing scheduled in U.S. District Court in San Diego on March 25, where a panel of judges will decide whether to consolidate the suits into a single national class-action suit.

Richard Cupp, a law professor at Pepperdine University in Malibu, Calif., said consolidating lawsuits is a common tactic among attorneys in such cases because it allows them to pool resources and reduces 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 sudden acceleration. 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.

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.