For decades, Toyota has built its reputation on the unshakeable pillars of quality and trust. Now that trust seems demolished. A colossal $5.7 billion lawsuit, filed in a federal court, alleges that the company’s foray into hydrogen fuel cell electric vehicles. The Toyota Mirai wasn’t merely a technological misstep. It was a decade-long, organized, fraudulent enterprise. Toyota is being sued under the RICO Act. A law originally designed to prosecute the mafia and other large-scale criminal organizations.
The 142-page complaint, filed in California, asserts that Toyota, its finance division, and its California dealer network conspired to market and finance a vehicle that technicians allegedly labeled a “ticking hydrogen time bomb”. The core accusation is clear. “This lawsuit is not about a simple defect. It is about organized fraud”.
The charges are catastrophic. The lawsuit claims that Toyota and its hydrogen partner, FirstElement Fuel (True Zero), intentionally concealed evidence of critical safety defects. These include explosive hydrogen leaks occurring dangerously close to hot engine components. But also unexpected losses of power and acceleration, and brake failures that allegedly led to collisions and injuries.
Above all, the complaint highlights the utterly ruined hydrogen infrastructure. This often left drivers stranded for weeks without access to fuel, all while Toyota’s finance arm employed aggressive collection tactics against owners of non-functioning vehicles.
This alleged concealment may violate a previous 2014 deferred prosecution agreement with the US Department of Justice. In that settlement, Toyota admitted to hiding safety defects related to widely publicized instances of sudden acceleration. By allegedly continuing this pattern with the Mirai, Toyota appears to have brazenly ignored its promise to truthfully report all future safety issues.
The plaintiffs are demanding triple damages, along with a federal order to block Toyota’s entire hydrogen business in the US Mr. Ingber’s statement sums up the gravity of the claim. “Our case will demonstrate how that trust is being violated and why consumers deserve accountability now”.
