Toyota Offers $75 To RAV4 Owners With Battery Fault, Lawyers Get Over $13 Million

Certain Toyota RAV4 owners in the U.S. may be eligible for a $75 reimbursement after the automaker agreed to settle a class action related to defective battery terminals that could potentially cause vehicles to stall, and potentially catch fire. Meanwhile, the lawyers involved in the case will receive $13,250,000 in attorneys’ fees and $350,000 for their expenses.

The first lawsuit related to the issue was filed in March 2021. This came shortly after the National Highway Traffic Safety Administration began to investigate reported battery issues on 2013-2018 RAV4s. It was soon determined that vehicles with front-end damage subsequently repaired, may have been equipped with replacement 12-volt batteries with a smaller top. This made it difficult to clamp down, and the positive battery terminal could touch the clamp, causing a short-circuit and fire.

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Plaintiff Juliet Murphy says she replaced her RAV4’s battery after seeing corrosion around the 12-volt battery and the terminals. Various other lawsuits were filed, and some of them have been consolidated into this settlement.

Toyota acknowledged the issue in November 2023 when it recalled almost 1.9 million RAV4s to replace the battery hold-down clamps, battery trays, and positive terminal covers. It also offered to reimburse owners who paid out of pocket to fix the fault.

Not everyone will be eligible for this latest reimbursement. Vehicles must not have been previously inspected as part of a Consumer Advisory notice issued by Toyota in 2021 related to the battery problem. If a vehicle was inspected, the current owner or lessee can request a second inspection. A claim can then be submitted for partial reimbursement to switch from the Group 26R battery to the Group 35 battery.

Those who previously received a $32 reimbursement through the Consumer Advisory notice can submit a claim to get an extra $43. Those who didn’t receive this initial reimbursement could be eligible for the full $75 if they submit a claim.

Toyota will also reimburse owners of RAV4s that experienced a “unique thermal event” due to the battery fault. The value of this reimbursement will vary on out-of-pocket expenses, and if repairs were paid by an insurer, Toyota will compensate owners for the deductible paid. The 12 owners who filed the class action will receive an additional $5,000 each.