Toyota $299.5M Settlement Over Emissions Certification of 2007-2021 IC Forklifts

This class action alleges that Toyota Material Handling and related Toyota companies engaged in improper conduct around emissions certification for certain internal-combustion (IC) Toyota forklifts built 2007–2021—specifically units with 1KD, 1ZS, 1FS, or 4Y engines sold or leased in the United States. Rather than litigate to a final judgment, the parties agreed to a $299.5 million non-reversionary settlement fund that plaintiffs say will yield roughly $1,000–$2,500 per eligible forklift (plus one free on-site service visit per operable unit) after court-approved fees and claims are allocated; Toyota disputes the allegations and the court has not ruled on liability. The deal covers hundreds of thousands of machines, imposes claim and opt-out deadlines (claims due Sept. 22, 2026), and includes potential recall-related warranty protections — meaning many fleet owners and lessees can recover cash and maintenance value but will be bound by the settlement if they do nothing. Beyond the immediate payouts, the case highlights regulatory and commercial pressures on manufacturers of “nonroad” internal-combustion engines, which must meet emissions certification frameworks administered under the Clean Air Act by the EPA and state programs such as California’s CARB. It echoes other high-profile emissions disputes (for example, the Volkswagen diesel litigation) in showing how certification, compliance, and consumer reliance can spawn large class actions and settlement-driven remediation. For the material-handling industry, the settlement may prompt closer scrutiny of certification practices, encourage fleet operators to monitor recall and warranty rights, and influence how dealerships, service programs, and future regulatory enforcement are handled across manufacturers.