Toyota Facing Class Action Lawsuit For Alleged Defective Transmissions

Share
2026 Toyota Camry XSE AWD

By Evan Williams

An unhappy Toyota owner in Nevada is looking to take the automaker to court for transmission woes. A class action suit has been filed in the state alleging problems with the Japanese automaker's eight-speed automatic transmission as found in vehicles like the 2017-2024 Camry and more. According to the complaint, that transmission is prone to early failures, limiting long-term durability and resale values.

Suit Says Two Big Problems Mean Failed Transmissions

2024 Toyota Camry
Toyota

The claim was filed in the US District Court for the Eastern District of Texas. Plaintiff James LeBoutheller claims there were two defects with the UA80 eight-speed automatic used in multiple Toyota vehicles.

First, the suit claims there is a design flaw that causes excess heat inside the transmission. It claims that causes it to "burn transmission fluid," resulting in premature transmission failure as well as stalling and "other dangerous situations."

2024 Toyota RAV4
Toyota

The second alleged defect is with the shift programming. The suit claims that the transmission is programmed for "premature upshifts and torque converter clutch engagements." Those, it alleges, cause the transmission to "deteriorate faster than expected."

2024 Toyota Highlander Platinum
Toyota

It all stems from LeBoutheller's own 2020 Toyota Camry XSE, which he purchased new from a Toyota dealer in Carson City, Nevada. LeBoutheller says that at around 80,000 miles on the odometer he started to "notice significant noise from his vehicle’s transmission assembly." The dealer told him it was functioning normally.

2025_Toyota_Grand Highlander_Nightshade_Cement_006
Toyota

At 125,000 miles, he brought the car to the same dealer once again, complaining of the same noises. This time, the dealer held it for 30 days and, allegedly, said it was functioning properly.

LeBoutheller took his car to a different Toyota dealer, where technicians found aluminum particles in the fluid and indicated the transmission would need to be replaced. Toyota agreed to pay for the new gearbox, but LeBoutheller would have to pay for installation.

Nearly 10 Years Of Vehicles Involved

2024 Lexus RX350h - 3/4 front view
Lexus

The list of vehicles involved in the Class Action, should it go forward, is substantial. Most of the larger models from Toyota and Lexus are on there, dating back to 2017 in some cases. This would represent millions of vehicles. LeBoutheller's suit cites multiple other owner complaints about the transmissions filed with the NHTSA.

Read the full article on CarBuzz  

This article originally appeared on CarBuzz and is republished here with permission.  

Story Continues
Share
Autos