Toyota Forklift Lawsuit Settlement, $436M Payout Approved, Claims Open Until May 2026

Toyota Industries Corporation and its U.S. subsidiaries reached a $436 million settlement to resolve allegations of emissions cheating in forklift engines, with the U.S. District Court for the Northern District of California granting preliminary approval on February 26, 2026. If you owned or leased a Toyota forklift manufactured between 2007 and 2021 equipped with certain diesel or propane engines, you could receive between $1,400 and $2,800 in cash compensation, plus free maintenance services worth up to $189.3 million, but you must file your claim before the May 2026 deadline to secure these benefits.

What the Toyota Forklift Lawsuit Settlement Includes

The settlement covers 272,422 Toyota forklifts manufactured between 2007 and 2021 equipped with nine specific engine models—1ZS, 1KD, and 4Y engines—that plaintiffs alleged emitted higher pollutants than disclosed. Toyota Industries Corporation, Toyota Material Handling North America, and Toyota Material Handling Inc. agreed to pay $299.5 million in direct cash payments to affected forklift owners and lessees, plus an additional $136.5 million in free inspections, maintenance services, and warranty coverage for qualifying forklifts still in operation.

The lawsuit stems from a January 2024 internal investigation by Toyota Industries Corporation that revealed employees falsified emissions test results by manipulating software and substituting engines during Environmental Protection Agency testing. According to court filings in the Northern District of California (Case filed September 2024), the misconduct first surfaced following a 2020 U.S. EPA inquiry about discrepancies in Toyota’s emissions data submissions. More than 20 businesses across 17 states filed suit claiming they paid premium prices for forklifts marketed as meeting strict emissions standards when the vehicles actually exceeded legal pollution limits.

The settlement class includes anyone who, as of February 26, 2026, owned, purchased, or leased one of the 272,422 covered Toyota forklifts in the United States. Eligible engines include the 1ZS diesel engine found in models like the 7FGU and 8FGU series, the 1KD diesel engine in larger capacity forklifts, and the 4Y propane engine common in warehouse operations. To determine if your forklift qualifies, you’ll need your Vehicle Identification Number from the data plate mounted on your forklift—this plate contains both your model number and serial number which the settlement administrator will verify against Toyota’s production records.

Who Filed the Lawsuit Against Toyota and Why

The class action lawsuit was initially filed in September 2024 by three lead plaintiffs—Broadmoor Lumber & Plywood in California, Ferraro Foods in New Jersey, and Marders nursery in New York—represented by consumer fraud law firm Lieff Cabraser. The plaintiff class expanded to include 22 businesses across 17 states by February 2026, all alleging similar claims of fraud, breach of warranty, and violations of state consumer protection statutes. 

These businesses claimed they purchased Toyota forklifts based on representations that the equipment met EPA emissions standards and produced lower emissions than competing brands, only to discover through Toyota’s own 2024 investigation that the emissions certification process was fraudulent.

The legal claims filed include fraud and intentional misrepresentation (alleging Toyota knowingly sold forklifts with falsified emissions data), breach of express and implied warranties (claiming Toyota’s emissions certifications constituted warranties that were breached), violations of state consumer protection acts in all 17 states where plaintiffs operated, and unjust enrichment (arguing Toyota profited from charging premium prices for equipment that didn’t deliver promised environmental performance). 

Plaintiffs sought compensatory damages for overpayment, punitive damages for intentional misconduct, injunctive relief requiring proper emissions testing and disclosure, and restitution of the price premium paid for forklifts marketed as low-emission equipment.

The defendants in this case are Toyota Industries Corporation, the Japan-based parent company and world’s largest forklift manufacturer with a 28% global market share; Toyota Material Handling North America, the Columbus, Indiana-based subsidiary responsible for U.S. operations; and Toyota Material Handling Inc., the American sales and distribution entity. Toyota Motor Corporation, the automotive giant, was originally named as a defendant but was dismissed from the lawsuit in January 2026 after the court found it had no involvement in forklift emissions testing or certification—only the Toyota Industries entities participated in the alleged misconduct and are bound by the settlement terms.

Related Article: Toyota Airbag Class Action Lawsuit Settlement: $78.5M Approved, Claims Open Until December 2026—Up to $250 Cash Plus Reimbursements

How Much Money You’ll Get and How to File Your Claim

The settlement provides two types of benefits: cash payments and maintenance services. Cash payments of $1,400 to $2,800 per qualifying forklift will be distributed from the $299.5 million cash fund, with exact amounts depending on how many valid claims are filed—if fewer claims come in, individual payments increase; if more claims are submitted, payments decrease proportionally but won’t fall below $1,400 per forklift. 

The maintenance benefit provides a free comprehensive inspection by an authorized Toyota Material Handling dealership, including a manufacturer-recommended multi-point inspection covering all major forklift systems, plus your choice of either a free oil change or transmission fluid change, valued at $300-$700 per forklift depending on model and service requirements.

To file your claim, visit the official settlement website that will be established following the February 26, 2026 preliminary approval hearing—the settlement administrator Kroll Settlement Administration will manage the claims process and publish the website URL through official court notices and direct mailings to registered forklift owners. 

You’ll need to provide your forklift’s VIN (found on the data plate), proof of ownership or lease agreement showing you owned or leased the forklift during the class period, and your current contact information for payment delivery. Claims can be submitted online through the settlement website or by mailing a completed paper claim form to Kroll Settlement Administration at the address that will be provided in the official settlement notice.

The claim filing deadline has not been finalized yet, but based on the February 26, 2026 preliminary approval hearing, claims will likely be due by late May or early June 2026—typically courts allow 90-120 days after preliminary approval for claim submissions. Check the settlement website regularly after February 26, 2026 for the exact deadline. The final approval hearing is expected to occur in May 2026, after which payments will be distributed within 60-90 days if no appeals are filed, meaning most claimants should receive their settlement checks by August or September 2026.

What You Must Know About This Settlement

The February 26, 2026 preliminary approval hearing represents a critical milestone because it’s when U.S. District Judge Jacqueline Scott Corley will review the settlement terms and decide whether they’re fair, reasonable, and adequate for class members. 

During this hearing, the court examines whether the $436 million total settlement value adequately compensates forklift owners for their losses, whether the claims process is accessible and reasonable, and whether the attorney fee request of $74.9 million (17% of the total settlement value) is appropriate given the complexity of the litigation and benefits secured for the class. If the court grants preliminary approval, the settlement moves forward; if not, the parties may need to renegotiate terms.

This settlement is significantly larger than most product defect class actions but smaller than major environmental fraud cases. For comparison, Volkswagen paid over $14 billion to settle its diesel emissions cheating scandal affecting consumer vehicles, while Cummins Inc.—another emissions fraud case involving diesel engines—paid $2 billion including a $1.675 billion civil penalty under the Clean Air Act. 

The Toyota forklift settlement’s $1,400-$2,800 per-vehicle payout represents approximately 5-11% of the average $25,500 purchase price for covered forklifts, which legal experts consider reasonable compensation for warranty breach and overpayment claims when balanced against the costs and risks of continued litigation.

Toyota Industries Corporation has not admitted any wrongdoing as part of this settlement. While the company’s January 2024 investigation report acknowledged that employees falsified emissions data in Japan, Toyota maintains in its settlement agreement that it disputes liability and settled solely to avoid the time, expense, and uncertainty of prolonged litigation. 

This is standard legal language in class action settlements and doesn’t prevent Toyota from being held accountable—the settlement still binds the company to pay $436 million and provide the maintenance services regardless of any admission of fault.

One critical restriction: forklift owners can only claim benefits for forklifts they owned or leased as of February 26, 2026. If you sold your Toyota forklift before this date, you may still be eligible if you can prove ownership during the class period, but the settlement gives priority to current owners. Additionally, the settlement only covers the nine specific engine models identified in the lawsuit—if your Toyota forklift has a different engine (such as electric powertrains or other diesel/propane engines not listed), you’re not part of the settlement class even if it was manufactured between 2007 and 2021.

What to Do Next to Protect Your Rights

Mark your calendar for the February 26, 2026 preliminary approval hearing—while you don’t need to attend in person, this date triggers the start of the official claims period. Within days after this hearing, the settlement administrator Kroll will launch the official settlement website and begin mailing notice packets to registered forklift owners whose contact information appears in Toyota’s customer databases. 

If you don’t receive a mailed notice by mid-March 2026, don’t assume you’re ineligible—proactively visit the court’s Public Access to Court Electronic Records system at pacer.gov to search for case updates under the Northern District of California case number and locate the settlement website link.

Gather your documentation now before the claims deadline approaches. Locate your forklift’s data plate (usually mounted on the overhead guard or counterweight) and photograph or write down the complete VIN, model number, and serial number. Find proof of ownership such as your original purchase invoice, lease agreement, bill of sale, or registration documents showing when you acquired the forklift. If you purchased your forklift used, gather any transfer of ownership documents or dealer sales records. For the maintenance benefit, verify your forklift is still operational—only working forklifts qualify for the free inspection and service program.

Stay informed about case developments by checking these reliable sources: the official settlement website administered by Kroll Settlement Administration (URL to be announced after February 26, 2026 hearing); the U.S. District Court for the Northern District of California’s PACER system for official court filings and hearing schedules; and legal news sources that covered the settlement announcement including Reuters, Law360, and consumer rights websites like class action settlements coverage on AllAboutLawyer.com.

If you need legal advice about whether to participate in the settlement or opt out to pursue individual claims, consult with a consumer protection attorney experienced in product defect and warranty litigation. Opting out preserves your right to sue Toyota independently but means you forfeit all settlement benefits including the cash payment and free maintenance—this only makes sense if you suffered damages significantly exceeding the settlement amount, such as if defective emissions led to regulatory fines, loss of contracts, or major operational disruptions for your business.

For questions about your eligibility, claim status, or settlement benefits, contact Kroll Settlement Administration at the toll-free number that will be provided on the official settlement notice (typically available 24/7 with automated FAQ assistance). Do not contact Toyota directly about the settlement—the company cannot provide claim information or legal advice, and all settlement questions must go through the court-appointed settlement administrator.

Does My Toyota Forklift Qualify for This Settlement?

Your forklift qualifies if it was manufactured between 2007 and 2021 and contains one of nine specific engines targeted in the lawsuit: 1ZS diesel engines, 1KD diesel engines, or 4Y propane engines. These engines appear in popular Toyota forklift series including the 7FGU, 8FGU, 7FDU, and 8FDU models commonly used in warehouses, distribution centers, and manufacturing facilities. Electric Toyota forklifts do not qualify because the lawsuit specifically alleges emissions fraud in diesel and propane internal combustion engines—electric models have no emissions to falsify.

What Exactly Did Toyota Do Wrong According to the Lawsuit?

According to the amended complaint filed in December 2024 and Toyota’s own January 2024 investigation report, company employees manipulated emissions testing by installing software that detected when forklifts were undergoing EPA certification tests and temporarily reduced emissions output during testing, then reverting to normal (higher-emission) operation afterward. Additionally, investigators found instances where Toyota substituted specially-tuned “golden” engines during certification testing that performed cleaner than production engines actually installed in customer forklifts. 

These practices mirror the tactics used in the Volkswagen diesel emissions scandal, allowing Toyota to obtain EPA certification for engine families that didn’t actually meet Clean Air Act standards in real-world operation.

How Much Will I Actually Receive After Lawyers Take Their Cut?

The $299.5 million cash fund is separate from attorney fees—meaning the lawyers’ $74.9 million fee request comes from a different calculation and doesn’t reduce your individual payout. Your payment depends solely on how many valid claims are filed by other forklift owners. If all 272,422 eligible forklifts file claims, each receives approximately $1,100. 

If only half file claims (a typical rate for class action settlements like progressive), individual payments double to around $2,200. The settlement guarantees a minimum payment floor, though the exact amount hasn’t been disclosed in preliminary documents.

When Is the Absolute Deadline to File My Claim?

The exact claim deadline will be set by the court at the February 26, 2026 preliminary approval hearing, typically 90-120 days after that date. Based on standard class action timelines, expect the deadline to fall between late May and early June 2026. Missing this deadline means you permanently forfeit your right to any settlement benefits—there are no extensions or late filings accepted except in extraordinary circumstances like military deployment or medical incapacity that must be documented and approved by the court.

Can I Get Both the Cash Payment and Free Maintenance Service?

Yes, these are separate benefits and all eligible class members receive both. The cash payment is automatic once you submit a valid claim form. The free maintenance service requires an additional step—after the settlement receives final approval, you must contact an authorized Toyota Material Handling dealership to schedule your complimentary inspection and service appointment, which must be completed within the timeframe specified in the final settlement order (typically 12-18 months after final approval).

What Happened in the February 2026 Court Proceedings?

On January 21, 2026, the parties filed their Motion for Preliminary Approval of Class Action Settlement with the U.S. District Court for the Northern District of California. The February 26, 2026 hearing is when Judge Jacqueline Scott Corley will hear arguments about whether to grant preliminary approval, allowing the settlement to proceed to the notice and claims phase. If approved, the court will set the final approval hearing for approximately 120 days later (likely May 2026), where the judge will make the final determination about whether to approve the settlement and order the distribution of settlement funds.

Are Toyota Forklifts With Electric Motors Included in This Settlement?

No. The settlement specifically covers forklifts with internal combustion engines (diesel and propane models) because those are the engines subject to EPA emissions certification requirements that Toyota allegedly manipulated. Electric forklifts produce zero direct emissions and aren’t subject to the same EPA engine certification process, so they weren’t part of the fraudulent testing scheme alleged in the lawsuit.

How Does This Compare to Other Toyota Settlements?

This $436 million forklift settlement is significantly larger than recent Toyota consumer vehicle settlements. The Toyota airbag control unit settlement paid $78.5 million for defective airbag systems in passenger vehicles, while the Toyota Prius inverter settlement provided extended warranties and limited cash reimbursement for hybrid powertrain failures. However, it’s substantially smaller than major automotive emissions fraud cases—Volkswagen’s $14.7 billion diesel settlement and Cummins’ $2 billion emissions penalty dwarf this forklift case, reflecting the smaller number of affected vehicles (272,422 forklifts versus millions of consumer vehicles) and the commercial nature of the plaintiffs who suffered business damages rather than personal injury.

Last Updated: February 2, 2026

Disclaimer: This article provides general information about the Toyota forklift emissions settlement and should not be considered legal advice.

Need guidance? If you own an affected Toyota forklift, review the official settlement website when it launches after February 26, 2026, and consider consulting with a consumer protection attorney if you have questions about your eligibility or whether to participate.

Stay informed, stay protected. — AllAboutLawyer.com

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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