Alexandria Attorney files suit against Toyota on Behalf of Dealers and Auction Companies

Lawsuit Filed on Behalf of Auto Dealers and Auction Companies by Neblett, Beard & Arsenault and Davis, Bethune & Jones


JEFFERSON CITY, Mo.--(BUSINESS WIRE)--Auto 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 they are incurring, according to a class action lawsuit (2:10-cv-04025-NKL ) filed in Missouri federal court on Friday.

“Class actions allow small businesses to come together and take on a corporate Goliath like Toyota”

The lawsuit, filed by Shawn Foster of Davis, Bethune and Jones in Kansas City, Missouri and J.R. Whaley of Neblett Beard and Arsenault in Louisiana, details the financial pain that holding excess and unsellable inventory causes automotive dealers generally. The lawsuit then specifies the financial strain that the recent recalls and Stop Sales Order have caused the automotive sales industry.

The lawsuit also claims that Toyota knew over a year before the recent Stop Sales Order that its gas pedals were defective. The lawsuit claims that Toyota hid that information from the automotive sales industry and instead blamed bulky floor mats for the sudden acceleration problems plaguing the auto maker. That delay, according to the lawsuit, caused automotive dealers and auction companies to buy vehicles they cannot now sell and forces those businesses to carry costs to 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. This lawsuit seeks some reimbursement for the costs these dealers are incurring because of Toyota’s actions,” said Shawn Foster. The lawsuit seeks class action status on behalf of all automotive dealers and auction companies but specifically excludes licensed Toyota dealers. “Class actions allow small businesses to come together and take on a corporate Goliath like Toyota,” J. R. Whaley explained. “Class actions are oftentimes the most affordable way to prosecute claims like this.”

The lawsuit is pending in the federal court in Jefferson City, Missouri and is entitled Jerry Baker Auto Sales, LLC v. Toyota Motor Sales, U.S.A., Inc. et al. The docket number is 2:10-cv-04025-NKL.