Toyota’s Settlement May Mean Consumer Fraud, Racketeering Suits Next

Toyota will pay 16.4 million dollars in charges for not notifying the US government the safety issues its cars had in timely manner.

This was arguably the largest penalty the Department of Transportation had put on any company.

Lawyers may now be able to argue that Toyota committed consumer fraud since the settlement means the automaker accepts responsibility for hiding the defects.

While charges of racketeering are very difficult to prove, judges are very strict and sometimes may triple the penalty.

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