Tag Archives: Lawsuit

News

Toyota Faces Explosive Allegations Over Mirai Hydrogen Sedan

Toyota, the automaker that helped define modern reliability, now finds itself at the center of a lawsuit that reads more like a crime novel than a consumer complaint. A new class action filed in California accuses Toyota of running what plaintiffs call a “criminal enterprise” designed to hide serious safety defects in its hydrogen-powered Mirai sedan. The requested damages? A staggering $5.7 billion.

Filed in the U.S. District Court for the Central District of California by the Ingber Law Group, the 142-page complaint invokes the Racketeer Influenced and Corrupt Organizations Act (RICO) — the same law once used to dismantle the mob. The suit alleges that Toyota, its financing arm, and several California dealerships engaged in a coordinated cover-up of what technicians reportedly described as “ticking hydrogen bombs.”

Hydrogen Dreams Turned Headaches

According to the filing, Toyota and its hydrogen partners concealed multiple flaws in the Mirai, including potential hydrogen leaks near hot engine components, posing an explosion risk. The plaintiffs also allege repeated instances of sudden power loss, erratic acceleration, and braking failures.

One Mirai owner reportedly pressed the brake pedal only for the car to surge forward. Others described multi-second delays between hitting the throttle and any response from the powertrain — a terrifying experience in traffic. In at least one case, dealership technicians allegedly told customers to seek legal action after experiencing repeated failures.

Adding insult to injury, Toyota Motor Credit Corporation, the company’s financing arm, is accused of “aggressive financial collection tactics” against affected owners. The suit also points to the limited and unreliable hydrogen refueling network in California, which remains the Mirai’s only viable market.

A Hydrogen Meltdown in Torrance

The complaint highlights a particularly damning episode at a Torrance, California, hydrogen station, which allegedly dispensed contaminated fuel that left at least 75 Mirais permanently inoperable. Plaintiffs claim Toyota failed to disclose the issue publicly, instead burying affected vehicles and compensation claims under corporate bureaucracy.

“This lawsuit isn’t about a simple defect — it’s about organized fraud,” said lead attorney Jason M. Ingber in a statement. “Toyota engineered, financed, and controlled California’s hydrogen network, then used that control to hide safety failures and financial harm to consumers.”

The RICO Angle: From Mobsters to Motors

Originally written to prosecute mafia bosses, the RICO Act allows plaintiffs to argue that a corporation engaged in a pattern of criminal activity. In this case, the lawsuit suggests Toyota operated a white-collar version of organized crime, using its corporate ecosystem — dealerships, financiers, and fuel partners — to disguise safety risks and protect profits.

The proposed class includes all Californians who purchased or leased a 2016–2025 Toyota Mirai in the past four years. Plaintiffs claim Toyota “ingeniously concealed catastrophic safety defects so their fraudulent scheme remains undetected.”

A Hydrogen Story Hollywood Never Wrote

If this all sounds like a sequel to Who Killed the Electric Car?, that’s because Hollywood never got around to writing the hydrogen one. For now, the Mirai remains a niche symbol of Toyota’s zero-emission ambitions — but this lawsuit could turn it into a case study in how not to launch an alternative-fuel future.

Toyota has not yet filed a response to the complaint. The company previously touted the Mirai as a technological triumph — the world’s first mass-produced hydrogen fuel-cell sedan — and a key part of its long-term carbon-neutral strategy.

But if even part of the lawsuit’s explosive allegations prove true, the Mirai’s future could look far less like a vision of tomorrow and far more like a cautionary tale about overpromising technology before the world is ready to fuel it.

Source: Reuters

News

Xiaomi’s Carbon Fiber Fiasco: When Form Fakes Function

You’d think that in 2025, the car industry had learned its lesson about pretending to be something it’s not. Yet, here we are—watching a tech giant better known for smartphones than supercars getting schooled in the fine art of authentic performance.

Xiaomi, still basking in the glow of its much-hyped SU7 and YU7 EVs, has stumbled into a rather sticky legal mess involving what should have been a piece of engineering theatre: the SU7 Ultra’s carbon fiber hood. On paper, it looked the part—carbon weave glistening under showroom lights, aggressive vents screaming “race car.” It was supposed to be a £4,600 slice of cutting-edge aero trickery. Instead, it turned out to be… well, cosplay.

Because when owners decided to peek under the bonnet—literally—they found out that those muscular ducts were about as functional as the hood scoops on a 2000s tuner special. Decorative. Non-breathing. Aerodynamically inert. In short, the vents were fake.

And in China, at least one furious SU7 Ultra owner wasn’t about to let that slide. They sued, claiming false advertising. The court agreed. Twice. A judge in Suzhou upheld a ruling ordering Xiaomi to refund the customer’s ¥20,000 deposit (around $2,800), cough up ¥126,000 ($17,640) in damages, and foot the ¥10,000 ($1,400) legal bill.

For a company the size of Xiaomi, that’s pocket change. But it’s the principle that stings—especially when your brand is built on trust in engineering precision. It’s one thing for a smartphone’s “AI-enhanced cooling vent” to be a decorative flourish; quite another when your supposed track-ready EV’s carbon fiber hood is nothing more than a designer hat.

Xiaomi insists the part was “aesthetic, not functional,” inspired by the brand’s record-breaking SU7 Ultra prototype. To soothe the crowd, they tossed out 20,000 Xiaomi Reward Points to each owner—roughly 2,000 yuan, or $280. A gesture, sure. But when you’ve paid nearly $6,000 for what amounts to carbon fibre wallpaper, a few loyalty points don’t exactly make the air flow any smoother.

The real danger here isn’t the payout—it’s precedent. This wasn’t a class action, just one owner’s case. But now that Xiaomi’s been publicly humbled, you can bet other SU7 Ultra drivers will start doing their own forensic hood inspections.

Because while Xiaomi’s electric ambitions have been impressive—its cars stylish, fast, and surprisingly well-priced—this episode reminds us of a crucial truth: performance isn’t just about how something looks. It’s about how it works.

And when you sell function, but deliver fiction, even the glossiest carbon fiber can’t cover the cracks.

Source: Reuters

News

Honda Hit with Lawsuit Over Alleged Engine Defects in Popular Models

Honda’s reputation for bulletproof four-cylinders may be taking a hit. A new class-action lawsuit filed in the United States alleges that certain 1.5- and 2.0-liter i-VTEC engines found in some of the brand’s most popular cars and crossovers are suffering from potentially serious defects, including overheating, head gasket failures, and even an increased risk of fire.

At the center of the complaint is the claim that head gaskets in these engines are prone to cracking under high compression and heat. Once that seal fails, coolant may leak into the cylinder head grooves, depleting the system and leaving the engine vulnerable to overheating or seizure. In more extreme scenarios, the plaintiffs argue, this chain of events could lead to engine fires.

Drivers have reportedly noticed warning signs such as white smoke from the exhaust—a telltale indicator of coolant entering the combustion chamber—and contaminated engine oil caused by coolant mixing in. Both issues can accelerate internal corrosion and, ultimately, engine failure.

The suit points to five vehicles equipped with these engines:

  • 2018–2022 Honda Accord
  • 2016–2022 Honda Civic
  • 2017–2022 Honda CR-V
  • 2021–2022 Acura RDX
  • 2019–2022 Acura TLX

Six owners are named in the case, including five Accord drivers and one CR-V owner. All allege Honda has failed to adequately address the problem, with some claiming warranty coverage was denied despite ongoing issues.

Allegations of Cut-Short Lifespans

According to the filing, Honda’s four-cylinder engines should last at least 200,000 miles under normal conditions. The plaintiffs argue that, because of the alleged defects, these i-VTEC engines fall far short of that expectation. They are suing the automaker for breach of warranty, unjust enrichment, and violations of consumer protection laws, while also seeking damages, legal fees, and a jury trial.

Not the First Complaint

This isn’t Honda’s first time facing scrutiny over its 1.5-liter engines. In late 2024, a separate California lawsuit raised concerns about inadequate sealing and cooling, which could allow coolant to leak into the engine, dilute the oil, and cause overheating or power loss.

Honda has not yet issued a public response to the latest filing, and the automaker has not announced any recalls related to the allegations. For now, the case underscores the growing tension between Honda’s long-standing reputation for reliable powertrains and recent reports from owners who say their engines are failing far earlier than expected.

Source: Honda