Toyota transmission lawsuits are now drawing attention to the brand’s widely used eight-speed automatic gearbox. Two class actions allege early failures caused by mechanical and software-related defects, raising concerns about durability, ownership costs, and resale value. The cases involve popular Toyota and Lexus models and question how the issue was handled over time.
Toyota Faces Legal Action Over UA80 Transmission
Toyota is facing renewed legal pressure in the United States as two class action lawsuits accuse the automaker of selling vehicles equipped with a defective eight-speed automatic transmission, known internally as the UA80.
According to the complaints, the transmission may fail prematurely due to a combination of overheating and software calibration issues, potentially affecting vehicle longevity and long-term reliability well before the end of a normal ownership cycle.
Claims of Mechanical and Software Defects
The most recent lawsuit was filed by James LaBoutheller, owner of a 2020 Toyota Camry XSE. He claims abnormal noises from the transmission led a Toyota dealership to diagnose complete gearbox failure, requiring replacement.
While Toyota reportedly agreed to provide a new transmission, it declined to cover installation costs. As a result, LaBoutheller says he paid several thousand dollars out of pocket for labor.
The complaint highlights two alleged defects:
- Mechanical issue: Excessive heat buildup inside the transmission, accelerating internal wear and degrading transmission fluid.
- Software issue: Programming that forces early upshifts and premature torque converter clutch engagement, increasing stress on internal components.
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Allegations of Prior Knowledge
The lawsuit further claims Toyota was aware of problems with the eight-speed transmission during pre-production durability testing. It alleges that the company continued using the gearbox despite internal data, customer complaints, dealer service records, and regulatory submissions pointing to early failures.
According to the filing, Toyota introduced software updates aimed at improving fuel efficiency, but these updates allegedly worsened transmission wear. The suit also accuses the automaker of reassuring customers that vehicles were operating normally, while warranty coverage was often denied once mileage limits were exceeded.
LaBoutheller is seeking to represent a nationwide class of current and former owners and lessees, requesting damages, restitution, and injunctive relief.
Second Lawsuit Expands the Scope
A separate class action was recently filed in California by Neil Pallaya, who purchased a new 2020 Toyota Highlander equipped with a 3.5-liter V6 and UA80E transmission.
Pallaya reports a high-pitched whining noise beginning at around 67,000 miles. A Toyota dealer allegedly diagnosed complete transmission failure and quoted more than $7,400 for replacement, as the vehicle was no longer under warranty. He argues that the replacement unit suffers from the same underlying design flaws.
List of Potentially Affected Models
The California lawsuit broadens the range of vehicles potentially impacted by the alleged defect, including:
- Toyota Highlander (2017–present)
- Toyota Grand Highlander (2024–present)
- Toyota Camry (2018–2024)
- Toyota Sienna (2017–2020)
- Toyota Avalon (2019–2022)
- Toyota RAV4 (2019–present)
- Lexus RX 350 (2023–present)
- Lexus ES 250 (2021–present)
- Lexus ES 350 (2019–present)
- Lexus NX 250 / NX 350 (2022–present)
- Lexus TX 350 (2024–present)
The Toyota transmission lawsuits place renewed scrutiny on the durability of the UA80 eight-speed automatic gearbox. As the cases move forward, they could have broader implications for warranty practices, customer confidence, and the long-term reputation of Toyota and Lexus vehicles equipped with this transmission.
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