Jerry Presents: 4 of the Largest Automotive Lawsuits in History

Automakers are not immune to lawsuits, so let's take a look at four of the largest car lawsuits in history.
Written by Andrew Kidd
Reviewed by Kathleen Flear
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Auto companies
no strangers to lawsuits affecting their vehicles. They normally face class-action suits where enough people have the same legal grievance with a vehicle that it requires a collective action to seek damages against the offending company.
These lawsuits can lead to some eye-watering settlements, so join
Jerry
as we explore some of the most expensive lawsuits faced by automakers over the past few decades.

2016 Volkswagen EPA settlement: $14.7 billion

One of the most recent on this list is Volkswagen's $14.7 billion settlement to consumers for its use of a device that helped it fudge its emissions readings on its TDI diesel engines to pass U.S. emissions testing.
Dubbed "Dieselgate" by the press and public, this "cheat device" programmed into its engines would only activate emissions controls during regulatory lab testing to meet EPA standards. What this meant was that more than 475,000 VW and Audi vehicles were emitting up to 40 times more smog-causing exhaust particles and oxides than allowed by law.
The automaker's agreement with the feds specified that VW would cover as much as $10 billion in vehicle buybacks and owner compensation, $2.7 billion for environmental remediation. 
The company also had to set aside $2 billion to help restore consumers' trust in the Volkswagen brand.
MORE: Porsche Facing New Lawsuit Over Its Warranty
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2014 Toyota acceleration: $1.2 billion

Toyota paid out $1.2 billion in a 2014 settlement following a criminal investigation into sudden acceleration affecting more than 10 million 2007-2009 model year Toyota and Lexus vehicles.
The problem was initially thought to result from pedal entrapment due to an all-weather floor mat shifting out of position and in the way of the pedal. After Toyota recalled millions of floor mats, further investigation found that a design flaw caused certain pedals to stick in the depressed position.
A federal court decided that Toyota failed to inform customers about the issues with its vehicles. Particularly, NHTSA demanded penalties against Toyota for its failure to notify the agency of the sticky pedal defect for more than four months following its discovery. 
The usual reporting requirement in the U.S. is within 5 days. Toyota paid $1.2 billion in criminal penalties for intentionally hiding information about the defective vehicles.

2011 GM ignition switch issues: $900 million

GM paid a $900 million settlement to the U.S. government in 2011 for failing to disclose information about a faulty ignition switch that led to 124 deaths.
The faulty ignition switch could shut off the engine while the vehicle was in motion, which prevented the airbags from inflating. 
Cutting off the engine would also cause the loss of power steering and some braking power—which meant a crash was more likely to be deadly if the driver couldn't come safely to a stop.
The investigation found that GM was aware of the faulty ignition switch issue since 2001 and had even had meetings about it as early as 2005.

1991-2001 Ford Explorer rollovers: $1 billion

Ford paid out more than
$1 billion
over the past few decades for the deaths and injuries caused by rollovers of its 1991-2001 model year Ford Explorers. Those deaths included rising Mets star Brian Cole, who was killed when his Ford Explorer rolled over in 2001. A Mississippi jury awarded his family $131 million.
Plaintiffs in the case against Ford's rollover-prone vehicles alleged false advertising by the automaker and that the company had marketed its vehicles as safe when it knew of the rollover problem. 
This followed shortly after the federal government's investigation into 250 deaths in accidents caused by tread separation from Firestone/Bridgestone tires, which came standard on Explorers.
A 2007 settlement allowed owners of affected Explorers to apply for a $500 voucher to use toward a new Explorer or $300 vouchers for other Ford family vehicles. No word on how many of those went unused.
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