Toyota Nears Settlement in Oil Sludge Case

By Richard Seward

Published on January 29, 2007

The proposed settlement would not offer any monetary compensation to the claimants, but would provide owners of the affected models with time beyond the original eligibility period outlined by Toyota to have their vehicles repaired.

Details of the agreement have been mailed to approximately 7.5 million current and past owners of nearly 3.5 million Toyota vehicles from model years 1997 to 2002, including Avalon, Camry, Celica, Highlander, Sienna, Solara, Lexus EX 300 and Lexus RX 300 models.

In 2002, after receiving complaints from consumers, Toyota agreed to repair those vehicles exhibiting the oil sludge problem. For some owners, Toyota's response was not substantial enough, prompting the lawsuit.

The case represents the largest product liability suit ever brought against the Japanese automaker in the United States.

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