Partner Donald Pepperman Reaches $20 Million Settlement in Prius Stalling Defect Lawsuit Against Toyota

Donald Pepperman was mentioned in Law360 a December 6, 2021 story about Prius owners negotiating a $20 million plus settlement in a class-action against Toyota. In the 2018 lawsuit, consumers alleged that Toyota hid stalling problems in its 2014-2018 Priuses that took place at high speeds.

On Friday, December 3, the parties asked a California judge to greenlight their $20 million deal to resolve for all valid claims for reimbursement for the repair or replacement of defective parts. Under the agreement, the total amount of the settlement is uncapped meaning that if claims exceed $20 million, Toyota would have to pay. After the settlement, Pepperman said, “It is a $20 million cash settlement with more in warranty and other benefits.”

Pepperman, Associate Emily Stierwalt, and other plaintiff counsel representing Prius owners, withstood two motions to dismiss and sparked two safety recalls by the automotive giant.