Dealer, Auction Companies’ Class Action Lawsuit Filed Against Toyota in Missouri
JEFFERSON CITY, Mo. — A class action lawsuit was recently filed in Missouri federal court claiming that dealers and auction companies are "bearing the financial brunt" of Toyota's recent recalls and stop sales order and deserve to be compensated for the extra costs incurred.
The lawsuit, filed by Shawn Foster of Davis, Bethune and Jones in Kansas City, Mo., and J.R. Whaley of Neblett Beard and Arsenault in Louisiana, details the contended financial pain that "holding excess and unsellable inventory causes automotive dealers generally. "
Basically, the lawsuit claims that Toyota knew earlier that its gas pedals were defective, before it issued the stop sales order. That delay, the lawsuit contends, led dealers and auction companies to buy vehicles they cannot sell. It also claims this forced these businesses "to carry costs and hold this currently unsellable inventory."
"Most used-car dealerships are small businesses that really cannot afford to hold excess inventory, particularly in these tough economic times," claimed Shawn Foster. "The lawsuit seeks some reimbursement for the costs these dealers are incurring because of Toyota's actions."
The lawsuit seeks class action status on behalf of all dealers and auction companies, but excludes licensed Toyota dealers.
It is pending in the federal court in Jefferson City, Mo., as Jerry Baker Auto Sales LLC versus Toyota Motors Sales, USA.