Toyota Facing Multiple Class Action Lawsuits Over Allegedly Defective 8-Speed Transmissions

Toyota is being sued in multiple states over its eight-speed automatic transmission, which lawsuits allege is prone to premature failure.

Three separate class action lawsuits — filed in New Jersey, California, and Texas — claim the transmission suffers from a design defect that causes excess heat to build up inside the gearbox. According to the complaints, that heat burns through transmission fluid and accelerates internal wear, eventually leading to complete transmission failure. A second alleged defect involves the transmission's software, which the lawsuits say forces premature upshifts and torque converter clutch engagements, putting additional strain on already-vulnerable components.

The UA80 transmission has been used in some of Toyota's most popular models since 2017, meaning hundreds of thousands of vehicles could be affected. Here's the full list of models named in the lawsuits:

• 2017–present Toyota Highlander
• 2019–present Toyota RAV4
• 2023–present Toyota Grand Highlander
• 2017–2024 Toyota Camry
• 2017–2020 Toyota Sienna

• 2019–2022 Toyota Avalon
• 2019–present Lexus ES 350
• 2021–present Lexus ES 250
• 2023–present Lexus RX 350
• 2022–present Lexus NX 250
• 2022–present Lexus NX 350
• 2024–present Lexus TX 350

Owners across all three lawsuits report similar experiences: transmission noise, slipping gears, fluid leaks, loss of power, and eventual failure — often between 50,000 and 125,000 miles. Repair costs have reportedly ranged from $7,000 to $9,000 or more, and in many cases, the replacement transmissions allegedly had the same issues.

The lawsuits allege Toyota has known about these problems since at least 2016. According to the complaints, the company has issued dozens of technical service bulletins over the years but has never offered a permanent fix or issued a recall. Warranty coverage has allegedly been denied for many drivers who exceeded mileage thresholds, even when problems were first reported at lower mileages.

In one case, a Texas plaintiff alleges a Toyota dealer held his vehicle for 30 days before telling him the transmission was fine. A second dealer reportedly found aluminum particles in the fluid and confirmed the transmission needed replacement. Toyota allegedly agreed to cover the new gearbox but refused to pay for installation or labor.

There is no settlement yet in any of these cases. The lawsuits are still in their early stages, with plaintiffs seeking damages, restitution, and orders requiring Toyota to repair, recall, or replace the defective transmissions.

If you own one of the vehicles listed above, it's worth keeping an eye on how these cases develop.

Download ClassyAction to stay updated on these lawsuits and get notified if a settlement is reached.