Investor Alert

London Markets Open in:

Associated Press

July 15, 2019, 8:52 p.m. EDT

Toyota ordered to pay $16 million to Southern California dealer over Prius recall

Dealer claimed retaliation over allegations that 2014 recall didn’t fix defects

By Associated Press

Getty Images
Toyota, maker of the Prius, denies wrongdoing.

SANTA ANA, Calif. — Toyota has been ordered to pay nearly $16 million to a Southern California dealer who alleged that the company’s Prius recalls didn’t fix safety problems.

The Los Angeles Times reported an Orange County jury decided Monday that Toyota had breached “good faith and fair dealing” with Roger Hogan, who has dealerships in Claremont and San Juan Capistrano.

Hogan alleged Toyota retaliated against him after he began raising safety concerns about the Prius electric power system in 2017. The jury specifically ruled on Hogan’s claim that a 2014 Prius recall didn’t fix defects.

Toyota (TKS:JP:7203)   denies wrongdoing and says the jury’s decision doesn’t indicate its decision was related to vehicle safety issues.

The company still faces a lawsuit in Los Angeles that says its recalls failed to fix Prius defects.

Link to MarketWatch's Slice.