DOT Proposes Fining Toyota $16.4M Over Hiding Defect

Law360, New York (April 5, 2010, 7:29 PM EDT) -- The U.S. Department of Transportation said Monday that it is proposing a $16.4 million civil penalty against Toyota Motor Corp. for allegedly hiding the “sticky pedal” defect from regulators, in what would be the largest such penalty ever assessed against an automaker.

Toyota flouted its legal obligation to notify the DOT's National Highway Traffic Safety Administration of a possible sticky pedal defect within five business days and instead waited four months, the DOT said.

The DOT said a review of Toyota's records showed that on Sept....
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