$20M Class Action Settlement Over Toyota Prius’ Faulty Inverter

Toyota has settled a class action lawsuit for $20 million. Owners of 2009–2018 model year Prius cars will get money back because Toyota didn’t tell them about “potentially defective” inverters and energy converters in their hybrid cars.

Since 2014, well over 20,000 Prius owners have suffered inverter failure, prompting Toyota to widen its electric power system recall to include 2018 Prius c cars. When increasing battery voltage and switching from direct current to alternating current, the Toyota Prius hybrid inverter relies on high-power transistors. The Prius lost electricity when the inverter overheated and certain high-power transistors burned out.

Toyota sent out recalls to fix these problems, but drivers still sued the company, saying that Toyota knew its cars had bad inverters but still made owners and lessees pay for expensive repairs.

Toyota Motor Corp. agreed to pay $20 million to settle a class action lawsuit over a faulty inverter in its Prius vehicles. While this settlement is good news for the plaintiffs, it does not remove all obstacles to holding Toyota accountable because Toyota has not admitted any wrongdoing.

• Under this settlement, Toyota will replace the inverter on a subject vehicle if it fails within 20 years or unlimited miles of its first use.

• Toyota will offer the following loaner/towing services to class members:
• 1. Toyota will give a loaner car to a class member whose inverter needs to be fixed as soon as that person comes to get it fixed.
  2. Toyota will reimburse towing expenses incurred as a result of inverter/IPM failure.

• Toyota will disburse unclaimed money to select class members who have paid for Toyota Prius inverter repair or replacement.

• Toyota will pay $20,000,000.00 to establish a non-reversionary Qualified Settlement Fund. The money is given to class members who had to pay to fix or replace a Toyota Prius inverter. After the money is given out, Toyota will not pay any more money to cover the problem.

• The cy pres doctrine says that any money left over after everyone gets their fair share must be given to charity.

Any US citizen or permanent resident who owned or leased a Prius model year 2010–2015 or a Prius V model year 2012–2017 as of May 19, 2022 is eligible to receive compensation as part of a countrywide settlement. A total of E0E, J0V,F0R, and 20TA10 safety recalls were applied to the cars included in the settlement.

Members of the class must provide proof of any out-of-pocket costs incurred for inverter repair or replacement, including any towing or loaner fees. Any documentation of the inverter’s failure, such as a bill, bank statement, or sworn statement, will be enough as proof.

Redistribution Check Claim Deadline:  May. 12, 2023

Claim Form Deadline Date: Feb. 12, 2023

Final Hearing Date: Jan. 13, 2023