Judge Trims Toyota Steering Defect Class Action Lawsuit

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A federal judge last week significantly trimmed a proposed class action lawsuit accusing Toyota of hiding a dangerous steering defect in its 2009 and 2010 model year Corolla and Matrix vehicles, but allowed plaintiffs in the case to revise the complaint and try again.

Toyota owners Irene Corson and Susan Yacks sued Toyota Motor Corp. and Toyota Motor Sales USA Inc. in 2009 alleging that these Corolla and Matrix vehicles contain a defect in their electric power steering systems that makes them drift out of the driver’s control. Yacks claims the defect caused her daughter to spin out of control on a highway, causing her to drive into oncoming traffic before ending up on an embankment.

On April 24, U.S. District Judge Jesus G. Bernal dismissed six of the nine claims, saying the allegations were too vague and didn’t specify which company was to blame for which alleged violation.

“By stating the allegations against defendants collectively, plaintiffs have failed to provide each defendant with sufficient notice of the particular allegations against them,” Judge Bernal said in his order. “Plaintiffs’ decision to lump both defendants as ‘Toyota’ creates vague and conflicting allegations.”

Judge Bernal did, however, allow the plaintiffs to continue with their allegations of unfair trade under Pennsylvania and New York laws, which they say occurred because Toyota withheld information about the steering defects that would have deterred them from buying the vehicles.

Bernal said the plaintiffs – specifically Yacks – adequately demonstrated how the alleged lack of information ultimately harmed consumers who purchased the vehicles.

The Toyota Corolla, Matrix Steering Defect Class Action Lawsuit case is Corson, et al. v. Toyota Motor Sales USA Inc., et al., Case No. 12-cv-08499, U.S. District Court for the Central District of California.

The plaintiffs are represented by Thomas D. Mauriello of Mauriello Law Firm APC, John F. Edgar of Edgar Law Firm LLC and Rosemary F. Luzon, Natalie Finkelman Bennett and James C. Shah of Shepherd Finkelman Miller & Shah LLP.

UPDATE: On June 26, 2015, the parties filed a motion seeking preliminary approval of the Toyota steering defect class action settlement.

UPDATE 2: Instructions on how to file a claim for the Toyota Corolla power steering class action settlement are now available! Click here or visit www.CorollaECUSettlement.com for details.