Toyota could lose billions in lawsuits

TORRANCE, Calif., Feb. 12 (UPI) -- A U.S. law professor said Toyota Motor Corp.'s legal liabilities based on recent recalls may result in the largest legal bills ever for a car company.

In January, Toyota recalled 2.3 millions U.S. vehicles cars and temporarily halted production of eight models due to sticking gas pedals that reportedly caused some car to accelerate out of control.

All told, "this has the potential to be the biggest product liability case in the automotive industry," said Richard Cupp, a Pepperdine University School of Law professor, The Los Angeles Times reported Friday.

The company faces dozens of injury and death lawsuits and more than 30 lawsuits seeking class-action status among car owners who wish to recoup the resale value of their cars, which have now dropped in price.

"It's easy to prove damages here. You don't think you're damaged, try to sell your Toyota and see if you can get for it today what you could have four weeks ago," said Tim Howard, a Northeastern University law professor.

Toyota has said it would directly lose $2 billion in sales and vehicle repair costs. Based on an average value drop of $350 per car, if found liable for losses in resale value, Toyota could lose $2.1 billion on that issue alone, Howard said.