Toyota faces three class action lawsuits alleging early failure of its UA80 eight-speed automatic transmission across multiple models
Three class actions target Toyota’s UA80 transmission. Lawsuits allege early failure from heat and software strain. Owners report harsh shifts, slipping, noise, and power loss. Update: The legal pressure on Toyota’s eight-speed automatic transmission isn’t easing up, as a third lawsuit has now landed in federal court.
We’ve added the latest details below. Toyota is facing fresh legal trouble over one of its most widely used gearboxes. Three new class action lawsuits allege that the automaker’s UA80 eight-speed automatic transmission is prone to early failure, raising concerns about long-term durability and resale value. Following two earlier lawsuits we reported, a separate case has now been brought before the U.S. District Court for the District of New Jersey, as the issue appears to be spreading beyond a single jurisdiction. It includes the same number of models, ranging from the 2017 Highlander to current vehicles like the Lexus TX 350, which means the net is being cast fairly wide. More: Toyota Owner Didn’t Know His Car Was Talking To Insurers Until He Saw His Rates The new complaints claims the transmission suffers from two core defects and warns that “both defects are inherently dangerous,” alleging a faulty unit can cause a vehicle to behave unpredictably. According to the filing, affected transmissions may fail to engage or stay in gear, slip unexpectedly, leak fluid, hesitate between shifts, or produce harsh engagement, burning smells, unusual noises, and even a loss of power. Claims Of Reduced Lifespan The second lawsuit centers on claims that the transmission can compromise a vehicle’s lifespan and market appeal, particularly as issues are said to appear well before the end of a typical ownership cycle. The suit was filed by James LaBoutheller, a 2020 Toyota Camry XSE owner, who says he heard abnormal noises coming from the transmission. After taking the car to a Toyota dealership, he was informed that the transmission needed to be replaced. Toyota agreed to supply a new transmission, but not to pay for installation. That left LaBoutheller to cover the labor costs himself, totaling several thousand dollars out of pocket. According to the complaint, the transmission suffers from two main defects. The first is mechanical: excess heat reportedly builds up inside the gearbox, accelerating wear and degrading the transmission fluid. Read: $5.7 Billion RICO Lawsuit Says Toyota Ran A Hydrogen Crime Family The second issue involves the software. The suit claims that faulty programming causes the transmission to upshift too early and engage the torque converter clutch prematurely, which in turn places unnecessary strain on key internal components. Alleged Long-Term Knowledge According to the class action, Toyota has known about issues with the eight-speed transmission since durability testing before it even started to install the gearbox in customer cars. It further claims that the company disregarded years of warning signs, including internal data, customer complaints, dealer service records, and government safety submissions documenting early transmission failures. Toyota not only failed to act on the reported issues, the suit says, but also implemented software updates that increased wear on the transmission. The reason? To improve fuel efficiency, according to the filing. The plaintiff adds that Toyota continued to assure customers that their vehicles were working as intended. Meanwhile, warranty coverage was routinely denied once vehicles crossed mileage thresholds, even when the problems had first been reported at lower mileages. LaBoutheller is seeking to represent a nationwide class of current and former owners and lessees of several affected Toyota and Lexus models. He is seeking a jury trial and damages, restitution, and injunctive relief. Highlander Owner Alleges Failure In December last year, a separate class action was filed in California by plaintiff Neil Pallaya, who purchased a new 2020 Toyota Highlander in December 2020. The vehicle came equipped with a 3.5-liter V6 engine paired to a UA80E transmission. Pallaya’s complaint details a persistent high-pitched whining noise that began around 67,000 miles, which a Toyota dealer diagnosed as complete transmission failure. Because the vehicle was out of warranty, he was quoted more than $7,400 for a replacement, one he argues is just as flawed as the original. He claims the defect stems from fundamental design flaws, and that Toyota has failed to provide a meaningful remedy, leaving owners stuck with expensive repairs and ongoing questions about long-term reliability. The California suit expands the list of potentially affected vehicles, covering the following models: 2017-present Toyota Highlander 2024-present Toyota Grand Highlander 2018-2024 Toyota Camry 2017-2020 Toyota Sienna 2019-2022 Toyota Avalon 2019-present Toyota RAV4 2023-present Lexus RX 350 2021-present Lexus ES 250 2019-present Lexus ES 350 2022-present Lexus NX 250 and NX 350 2024-present Lexus TX 350
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