Allstate sues Toyota to recover $3M paid in unintended acceleration cases

Article by Christian Andrei, on October 5, 2010

Toyota Motor Corp. has been sued by Allstate Insurance Co., which is aiming to recover more than $3 million that the insurer and affiliates paid in claims for accidents related to unintended acceleration in Toyota vehicles.

Allstate filed the suit last Friday in Los Angeles Superior Court, marking a new angle in the wave of US civil litigation that Toyota faces due to economic losses that stemmed from the unintended acceleration cases.

In an interview with Reuters, Allstate spokeswoman Christina Loznicka said that it expects that other several insurance companies will be taking this action as well.

The Allstate complaint echoes the claims in a major class-action consumer suit pending in federal court against Toyota.

The suit alleges that Toyota has been ignoring evidence of acceleration problems in its vehicles and failed to install a brake override system that would have prevented accidents.

The Allstate action and the other suits claim that there was a defect in an electronic throttle system Toyota introduced in the 1990s, and that instead of recalling the cars or revising the design, Toyota "essentially hid the problem,” which resulted to multiple claims of property damage, injuries and deaths. [via autonews - sub. required]

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