Toyota is now embroiled in three federal class-action lawsuits alleging widespread failures in its UA80 eight-speed automatic transmission. The legal pressure is intensifying as reports of premature gearbox failures spread across multiple U.S. jurisdictions. Owners claim the transmissions are prone to critical defects, leading to unpredictable vehicle behavior, costly repairs, and diminished resale value.
Core Allegations: Mechanical and Software Defects
The lawsuits center on two primary flaws within the UA80 transmission. The first is mechanical: excessive heat buildup within the gearbox accelerates wear and degrades transmission fluid, reducing its lifespan. The second is software-related: faulty programming causes premature upshifting and torque converter clutch engagement, placing undue strain on internal components.
Plaintiffs allege Toyota knew about these issues during pre-production durability testing but proceeded with installation anyway, prioritizing fuel efficiency over long-term reliability. Court documents suggest Toyota even implemented software updates that exacerbated the problem to meet fuel economy targets, while simultaneously denying warranty claims once vehicles exceeded mileage thresholds.
Owner Experiences: Unexpected Failures and High Repair Costs
James LaBoutheller, a 2020 Toyota Camry XSE owner, exemplifies the issue. After hearing abnormal noises, a Toyota dealership confirmed his transmission needed replacing. While Toyota provided a new unit, the company refused to cover installation costs, leaving LaBoutheller with a several-thousand-dollar bill.
Another plaintiff, Neil Pallaya, experienced complete transmission failure in his 2020 Toyota Highlander at 67,000 miles. The dealership quoted over $7,400 for a replacement, which Pallaya argues is equally flawed. These cases highlight a pattern of owners facing unexpected failures outside of warranty coverage, despite evidence suggesting a systemic design flaw.
Affected Models and Legal Action
The lawsuits cover a broad range of Toyota and Lexus models, including the 2017 Highlander, current Lexus TX 350, and various other vehicles equipped with the UA80 transmission. LaBoutheller seeks to represent a nationwide class of affected owners and lessees, demanding a jury trial and financial damages.
The plaintiffs argue that Toyota disregarded years of warning signs, including internal data, customer complaints, and government safety submissions documenting early transmission failures.
The mounting legal pressure raises serious questions about Toyota’s quality control and transparency regarding this widespread mechanical defect. The long-term implications for the automaker’s reputation and future sales remain to be seen.
