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California law won’t help some Toyota owners sue the company

Suits for economic loss filed as a result of the company's acceleration problems

Toyota owners outside of California may be unhappy to learn that they cannot rely on that state’s law to sue the automobile maker for economic losses.

Last year, hundreds of Toyota owners all across the country filed suits against Toyota claiming they suffered economic losses because the value of their cars decreased as a result of the company’s highly publicized acceleration issues, which caused numerous crashes and deaths.    

Many plaintiffs were hoping to sue under a more liberal California law that would make it easier for those living in other states—with stricter laws—to bring suit against Toyota. A U.S. District Court judge ruled Wednesday that plaintiffs outside of California could not rely on that law.

Read Bloomberg’s more-detailed account of the judge’s ruling.

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