Toyota Forklift Emissions Scandal: Class Action Lawsuit Filed

Case Overview: A class action lawsuit has been filed against Toyota, alleging that the company falsified emissions data on their forklifts and misled customers about the vehicles' performance.

Consumers Affected: Businesses that purchased Toyota forklifts.

Court: U.S. District Court for the Northern District of California, San Francisco Division

Toyota is in hot water again, this time for allegedly falsifying emissions data on its forklifts. A group of businesses are suing the automaker, claiming the company misrepresented the environmental performance and engine power of their forklifts, leading to inflated prices and illegal sales. 

The lawsuit accuses Toyota of selling forklifts that emit far more pollutants than advertised and manipulating tests to mislead buyers.

Toyota Accused of Misleading Businesses with False Emissions Claims

Broadmoor Lumber & Plywood Co., Marders, and Ferraro Foods filed the proposed class action lawsuit against Toyota and its affiliates, accusing them of breaking a range of state and federal laws in the latest emissions scandal to rock the auto industry. They allege Toyota was involved in “unlawful, deceptive, fraudulent, harmful, and unfair business conduct and practices.”

The three businesses, which hail from San Francisco, New York, and New Jersey say that they bought Toyota forklifts believing they were purchasing clean-burning, high-performance vehicles. Broadmoor Lumber & Plywood Co., a landscaping supplier, bought eight forklifts based on Toyota's claims that the vehicles met regulatory emissions standards and were environmentally friendly. Marders, a New York-based landscaping company, and Ferraro Foods, an Italian food distributor, had similar experiences. 

Each plaintiff claims they were unaware that the forklifts emitted more pollutants and performed worse than Toyota advertised, saying they would not have purchased or would have paid less for the vehicles if they had known the truth. 

Lawsuit Alleges Toyota Falsified Emissions and Performance Data

According to the lawsuit, Toyota engaged in a complex scheme to alter emissions data and make their forklifts appear more environmentally friendly and powerful than they actually were.

The lawsuit alleges Toyota manipulated software in the engine control units, swapped parts during testing, and used different engines during certification tests than what was sold to customers. Toyota also reportedly exaggerated key performance metrics like torque and horsepower to mislead buyers about the machines' capabilities.

The scandal came to light after the U.S. Environmental Protection Agency began investigating emissions irregularities in 2020, prompting Toyota to suspend production of some forklift models in North America. Although the company initially claimed that the problem was limited to Japan, further investigations revealed the issues also affected vehicles sold in the U.S. market, the lawsuit says.

Toyota's History of Emissions Scandals Raises Concerns

This isn’t Toyota’s first run-in with emissions scandals. In recent years, the company has been involved in multiple controversies related to falsifying data, the lawsuit lays out.

In 2021, Toyota paid $180 million in fines for violating Clean Air Act reporting requirements from 2002 to 2015. The company also admitted to similar misconduct in 2023, when its subsidiary Daihatsu was found manipulating emissions tests. Toyota’s internal investigation revealed widespread cheating across its subsidiaries, leading to a broader investigation of the company’s environmental compliance.

The latest lawsuit against Toyota follows a pattern of misconduct that has plagued the company for years, the plaintiffs say, with regulators and customers growing increasingly frustrated by its repeated failures to comply with environmental standards.

Emissions Cheating Scandals Plague Auto Industry, Leading to Lawsuits and Fines

Toyota is far from the only automaker facing legal action over emissions cheating. The Volkswagen “Clean Diesel” scandal in 2015 rocked the automotive world when it was revealed the company installed software to cheat emissions tests on millions of vehicles. The company agreed to a settlement worth up to $14.7 billion. 

Similarly, Mercedes-Benz and its parent company Daimler paid $1.5 billion to settle claims over emissions cheating in their diesel vehicles, while Audi and Porsche also faced fines and lawsuits for similar misconduct.

The Toyota lawsuit alleges that other cases “have taught us that automakers can and frequently do illegally manipulate emissions, fuel economy, and other performance-related test results, and then sell those vehicles to customers on false premises and with deceptive representations.” 

The three plaintiffs want to represent other Toyota forklift owners from across the country in their claims of fraud by concealment, unjust enrichment, as well as other violations of California, New York, and New Jersey business laws. They are seeking enjoinment, damages, interest, rescission, fees and costs, and more.

Case Details

• Lawsuit: Broadmoor Lumber & Plywood Co., et al. v. Toyota Industries Corporation, et al.
• Case Number: 3:24-Cv-06640 
• Court: U.S. District Court for the Northern District of California, San Francisco Division 

Plaintiffs' Attorneys

• Elizabeth J. Cabraser, Kevin Budner, Phong-Chau G. Nguyen, David Stellings, and Katherine McBride (Lieff Cabraser Heimann & Bernstein, LLP)
• Roland Tellis (Baron & Budd, P.C.)

Have you purchased a Toyota forklift? Share your experiences and thoughts in the comments below.