As reported in the San Francisco Chronicle, Toyota Motor Corp. may have a tough time defending itself in U.S. lawsuits filed for flaws in its vehicles after U.S. Transportation Secretary Ray LaHood fined the company, saying it “knowingly hid a dangerous defect.”

The National Highway Traffic Safety Administration yesterday proposed a record civil penalty of $16.4 million, less than 2 percent of Toyota projected net profit for the year ending March 31, related to a January recall of 2.3 million U.S. autos for accelerator pedals that allegedly stick. Toyota failed to act in a timely manner after knowing of the problem since at least September 2009, LaHood said.

“It certainly bolsters our cases,” said Robert J. Nelson, a lawyer at San Francisco-based Lieff Cabraser Heimann & Bernstein LLP, who has filed 20 lawsuits on behalf of individual clients claiming personal injuries or deaths caused by sudden- acceleration incidents. “It demonstrates Toyota has been less than forthright with the U.S. government and with consumers.”

The Japanese automaker waited at least four months before telling the agency that accelerator pedals might stick, LaHood said yesterday in a statement. Companies have five business days to report safety defects, the agency said.

Read the full article on the SF Gate website.