In the United States, consumers have the right to pursue legal recourse when a product does not meet reasonable expectations. Many automobile owners use this right, which is evident from recent cases involving several manufacturers. General Motors has faced lawsuits regarding its eight speed transmission systems, Ford has dealt with litigation related to the F 150 Lightning, and Honda has been challenged over steering complaints. The latest development in the auto industry is a class action lawsuit filed against Toyota, centering on the company’s eight speed automatic transmissions that allegedly fail under normal driving conditions.
This lawsuit, filed in the Central District of California, alleges a series of mechanical problems that include slipping, harsh shifts, delayed acceleration, loud whining noise, erratic shifting, and in some cases, complete transmission failure. The case brings renewed focus to the growing concerns around eight speed transmissions across the industry, including issues previously reported with GM 8L90 and 8L45 units used in vehicles such as the Cadillac Escalade, GMC Sierra, Chevrolet Silverado, Cadillac ATS, Chevy Corvette, GMC Canyon, and Chevrolet Colorado.
The Toyota lawsuit is drawing national attention because it involves multiple model years and a broad list of affected vehicles, raising concerns about defective transmissions, torque converter problems, and long term durability.
Details of the Toyota Class Action Lawsuit
The lawsuit was filed by plaintiff Neil Pallaya after his 2020 Toyota Highlander experienced transmission issues shortly after passing the 60,000 mile warranty limit. According to the complaint, the eight speed automatic transmission in his Highlander began producing a high pitched whining noise. A dealership inspection determined that the unit had failed and needed to be replaced at an estimated cost of more than $7,400.
This situation mirrors several past cases involving transmission fluid breakdown, shuddering torque converters, and harsh shifts reported in the auto industry. Data compiled by Car Complaints, GM Authority, and other consumer platforms show that transmission issues remain among the most common mechanical failures across multiple brands.
Pallaya’s lawsuit seeks more than five million dollars in damages and claims that Toyota and Aisin, the supplier of the UA80E transmission, knew about internal manufacturing issues for nearly a decade. The complaint also alleges that Toyota’s warranty analytics group classified the transmission concerns as a high priority in early 2017.
Vehicles Named in the Lawsuit
The lawsuit lists multiple Toyota and Lexus models equipped with eight speed automatic transmissions, including:
Toyota
- Toyota Highlander (2017 to present)
- Toyota Grand Highlander (2024 to present)
- Toyota Camry (2018 to 2024)
- Toyota Sienna (2017 to 2020)
- Toyota Avalon (2019 to 2022)
- Toyota RAV4 (2019 to present)
Lexus
- Lexus RX 350 (2023 to present)
- Lexus ES 250 (2021 to present)
- Lexus ES 350 (2019 to present)
- Lexus NX 250 and NX 350 (2022 to present)
- Lexus TX 350 (2024 to present)
Each of these vehicles uses a version of the eight speed transmission that the lawsuit claims suffers from torque converter overheating, degraded transmission fluid, and premature wear of internal transmission components.
Technical Problems Highlighted in the Lawsuit
According to the lawsuit, the eight speed drive train exhibits multiple issues that affect performance and safety. These include:
1. Torque Converter Problems
The torque converter allegedly overheats, causing fluid breakdown. This can result in slipping, bucking, jerking, and abnormal noise. Similar torque converter defects have previously been reported in GM’s 8 speed transmission cases, which also involved shuddering torque converters and rough shifts.
2. Erratic Behavior of the Transmission Control Module
The lawsuit references several Technical Service Bulletins noting that the transmission control module firmware may contribute to harsh shifts, hesitation in lower gears, and delayed acceleration. Some reports indicate that the unit holds gear too long or shifts at unusually high RPM shift points.
3. Transmission Fluid Degradation
Burned or degraded fluid reduces lubrication and cooling. Past GM and Toyota cases both show that fluid exchange sometimes provides temporary relief but does not eliminate the underlying cause of transmission failure.
4. Valve Body and Clutch Problems
The lawsuit alleges that friction material and clutch packs wear prematurely. These concerns closely resemble issues identified in GM’s 8L90 and 8L45 transmissions.
5. Safety Hazard
The plaintiff argues that hesitation and loss of power create a safety hazard when drivers need to accelerate from a stop or merge into traffic.
Technical Service Bulletins Cited in the Lawsuit
The lawsuit includes a long list of TSBs and tech tips issued between 2016 and 2023. Some of them include:
- Toyota Tech Tip T TT 0410
- Bulletin T SB 0160 18
- Bulletin T SB 0008 21
- Bulletin T SB 0122 20
- Bulletin T SB 0087 23
These bulletins discuss complaints, diagnostics, transmission codes, and corrective steps related to hesitation, abnormal noise, improper torque converter operation, and other concerns. Many owners first learned of these TSBs through forums like ToyotaNation Highlander Board, where automobile owners frequently discuss transmission temperature, ECU firmware updates, VIN numbers, and long term reliability of the UA80E transmission.
Broader Industry Context: GM’s Eight Speed Transmission Cases
The Toyota lawsuit has drawn comparisons to GM’s eight speed transmission litigation involving defective transmissions in vehicles such as:
- Cadillac Escalade
- Chevrolet Corvette
- GMC Sierra
- Chevrolet Silverado
- GMC Canyon
- Chevrolet Colorado
- Cadillac ATS
- Chevy Camaro
These lawsuits alleged shuddering torque converters, harsh shifts, delayed acceleration, and internal transmission fluid breakdown. Cases such as Speerly v. GM and Battle v. General Motors gained significant attention as plaintiffs sought compensation for repeated repairs and loss of vehicle value.
Earlier lawsuits against GM argued that the 8L90 and 8L45 units suffered from internal design flaws and inadequate fluid composition. Many consumers complained of inconsistent performance, shuddering under moderate acceleration, and unpredictable drivability.
The parallels between the GM and Toyota cases suggest that eight speed automatic transmissions across the industry have faced engineering challenges in balancing fuel economy, performance, and durability.
How Drivers Are Affected
Failure of an eight speed automatic transmission can create several problems:
1. Financial Burden
Transmission replacement often costs thousands of dollars, and many failures occur shortly after the powertrain warranty expires.
2. Safety Risks
Hesitation, loss of power, and unpredictable acceleration can increase the risk of accidents, especially when merging or crossing intersections.
3. Loss of Resale Value
Vehicles linked to defective transmissions often lose value quickly. Buyers avoid models with known mechanical issues unless discounted significantly.
4. Repeated Repair Attempts
Some owners experience recurring problems even after software updates or fluid exchange procedures.
Consumer Steps and Awareness
Drivers experiencing symptoms such as jerking, delayed acceleration, or loud whining noise should take immediate steps:
- Document every incident.
- Request a dealership inspection.
- Use an OBD2 code reader if available.
- Preserve service records.
- Stay updated on class certification progress.
In some cases, early detection prevents further damage to the transaxle assembly or torque converter.
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