New Lawsuit Accuses Toyota of Hiding Deadly Defects in its Hydrogen Fuel Cell Car

A massive $5.7 billion lawsuit filed in a California federal court alleges that Toyota orchestrated a fraudulent enterprise to conceal catastrophic safety flaws in its hydrogen fuel cell-powered Mirai sedan. 

The case, invoking the Racketeer Influenced and Corrupt Organizations (RICO) Act of the USA, claims that Toyota, its financing arm, and dealerships engaged in a decade-long cover-up that endangered lives and breached a prior U.S. Department of Justice (DOJ) settlement.  

The Allegations  

The RICO statute, part of the 1970 Organized Crime Control Act, targets patterns of criminal activity by corporations or groups. Here, plaintiffs argue Toyota’s actions fit this definition: the company allegedly hid defects like hydrogen leaks near hot engine components (risking explosions), sudden power loss, braking failures, and a crumbling hydrogen infrastructure causing owner strandings. 

Technicians reportedly dubbed the Mirai a "ticking hydrogen bomb." Jason M. Ingber, the lead attorney, stated that this isn’t about a defect, but an organised fraud. He claimed that Toyota controlled California’s hydrogen network to mask dangers and financial harm.  

The suit contends Toyota violated a 2014 DOJ Deferred Prosecution Agreement. In that settlement, Toyota admitted to concealing unintended-acceleration defects and pledged to report all future safety issues transparently. 

By allegedly hiding Mirai’s flaws, Toyota faces accusations of mail and wire fraud. The plaintiffs seek treble damages (over $17 billion), an injunction, and a federal order halting Toyota’s hydrogen operations.  

Infrastructure Woes Deepen Crisis  

Toyota’s troubles coincide with America’s struggling hydrogen ecosystem. Shell’s closure of public hydrogen stations in January 2024 left few operational refuelling points, with many Mirai owners reporting weeks of immobility due to fuel shortages. 

Despite Toyota’s deep discounts, the lack of reliable infrastructure has undermined the Mirai’s viability.  

Also read: MG Surpasses 100,000 EV Sales in India