Toyota 8 Speed Transmission Lawsuit, What Owners Need to Know in 2026

TL;DR

• Three class action lawsuits filed between December 2025 and February 2026 accuse Toyota of selling roughly a decade of vehicles with a defective UA80 eight-speed automatic transmission and torque converter (LeBoutheller v. Toyota Motor Sales U.S.A., No. 4:25-cv-01389, E.D. Tex.; Pszwaro v. Toyota Motor Sales U.S.A., D.N.J., filed February 17, 2026).
• The suit names 2017 and newer Highlander, RAV4, Grand Highlander, Camry, Sienna and Avalon, plus Lexus ES, RX, NX and TX models.
• Owners report failures between 30,000 and 70,000 miles with out-of-warranty replacement quotes from $7,400 to over $9,000 (Autoblog, 2026; CarComplaints, 2026).
• The Toyota Tacoma runs a different eight-speed unit. Its problem is covered by service bulletin T-SB-0094-24, which orders a free transmission and torque converter replacement under the 60-month powertrain warranty (CarComplaints, 2024).
• A class action pays cents. A California lemon law claim can pay a full buyback plus a civil penalty of up to two times your damages. You usually cannot have both, so the order you file in matters.

What the Toyota 8 Speed Transmission Lawsuit Actually Alleges

The Toyota 8-speed transmission lawsuit claims Toyota’s UA80 automatic transmission runs too hot, cooks its own fluid, and destroys itself from the inside while the driver gets no warning until the truck or SUV stops pulling. Three separate class actions filed in Texas, California, and New Jersey between December 2025 and February 2026 make versions of the same argument.

The complaints describe two problems working together.

The first is mechanical. Heat builds inside the transmission case faster than the fluid can shed it. Burnt fluid stops lubricating. Clutch packs and the torque converter wear early, and owners start finding aluminum particles in the pan.

The second is software. The transmission control module is tuned to upshift early and lock the torque converter clutch early, which is a fuel economy strategy. The complaints allege that tuning keeps the transmission under load at low RPM, which produces the heat that starts the first problem.

Put simply, the lawsuits say Toyota chased an EPA number and the gearbox paid for it.

The first case, LeBoutheller v. Toyota Motor Sales U.S.A., Inc., No. 4:25-cv-01389, was filed in the U.S. District Court for the Eastern District of Texas in December 2025 and seeks a nationwide class plus a Nevada subclass (ClassAction.org, 2025). The most recent, Pszwaro et al. v. Toyota Motor Sales U.S.A., Inc., landed in the U.S. District Court for the District of New Jersey on February 17, 2026, with four named plaintiffs driving a 2024 Camry SE, a 2024 Lexus TX, a 2018 Camry XLE, and a 2023 Lexus ES 350 (CarComplaints, 2026).

None of these cases has been certified as a class yet. Nobody has been paid. If you are reading this because your Highlander shudders at 40 mph, the class action is not your rescue plan, and the section on your two options below explains why.

Which Toyota and Lexus Models Have the UA80 Transmission

The complaints identify twelve model lines built from 2017 forward. Here is the list as pleaded in the Texas case.

Source: ClassAction.org (2025), summarizing the LeBoutheller complaint.

The year ranges shift slightly between complaints. The New Jersey filing pleads the Camry as 2018 to 2024 and the Avalon as 2019 to 2022 (CarComplaints, 2026). If your model year sits on one of those borders, do not assume you are excluded. The pleaded range is the lawyers’ opening position, not a warranty schedule.

Hybrid variants are a separate question. Toyota’s hybrid models generally use an eCVT rather than the UA80, so a RAV4 Hybrid is a different animal from a RAV4 with the eight-speed. Check your build sheet before you assume anything.

Why the Toyota Tacoma Is a Different Problem Entirely

The Tacoma does not use the UA80, and it is not part of the class actions. The 2024 and newer Tacoma runs a separate eight-speed automatic, and Toyota already admitted that one in writing.

Service bulletin T-SB-0076-24, published September 9, 2024, covered 2024 Tacoma trucks with automatic transmissions. Toyota superseded it on October 14, 2024, with T-SB-0094-24, which added the Tacoma Hybrid (CarComplaints, 2024).

The bulletin triggers when the malfunction indicator lamp comes on with one or more of these codes.

Source: CarComplaints (2024), reporting T-SB-0094-24.

The prescribed repair is not a fluid flush or a reflash. Toyota tells the dealer to replace the automatic transmission assembly and the torque converter, plus the hybrid module on hybrid trucks, at no charge under the 60-month or 60,000-mile powertrain warranty.

That matters for two reasons. A bulletin is not a recall, so nobody mails you a letter. And a truck that needs a whole new transmission before 60,000 miles is exactly the fact pattern a lemon law claim is built on. Our breakdown of 2025 Tacoma problems covers the rest of what owners are reporting on the fourth-generation truck.

How Long Toyota Has Known, According to the Paper Trail

The complaints allege Toyota knew about the eight-speed’s behavior as far back as August 2016, and the public record does show early warning signs.

In December 2016, Consumer Reports told Toyota that its test 2017 Highlander and Sienna revved the engine before upshifting, most noticeably from second to third, even under light throttle. Toyota issued TSB-0194-17 for the Highlander V6 and TSB-0197-17 for the Sienna in early March 2017, and changed production in late February 2017 (Consumer Reports, 2017).

A December 2017 bulletin addressed erratic transmission behavior on the 2018 Camry, and in April 2019 Toyota issued an extended warranty notice to dealership service departments (SlashGear, 2026).

Read the sequence. A magazine flags a shift quality problem in 2016. Toyota reflashes the software in 2017. Another bulletin follows in 2017. A warranty extension goes out to service departments in 2019. Nine years later there is still no recall, and owners are quoted five figures for a replacement.

That gap is the whole legal argument. The complaints say Toyota patched symptoms with software while the underlying heat problem kept killing transmissions, and that owners who paid out of pocket after the warranty expired paid for a defect Toyota already understood.

To be precise about the current status, NHTSA has not issued a safety recall for the UA80 transmission (SlashGear, 2026). If that changes, it will appear in the federal database, and you can check your own VIN at NHTSA’s recall lookup.

What Toyota 8 Speed Transmission Failure Feels Like From the Driver’s Seat

Owners describe a slide rather than a single failure event, which is why so many people spend a year telling themselves it is nothing.

Here is the progression reported across the complaints and owner accounts.

Early stage: A shudder around 35 to 45 mph that feels like driving over rumble strips that are not there. Hesitation of a second or two when you pull out into traffic. Harsh two to three or three to four-upshifts.

Middle stage: Flare between gears where the engine revs but the vehicle does not accelerate. A delay of several seconds between shifting into drive and the vehicle actually moving. A burnt smell after a highway run.

Late stage: A high-pitched whine that rises with speed. Slipping out of gear. Aluminum glitter in the transmission fluid. Loss of power without a warning light.

Reported failure mileage clusters between 50,000 and 70,000 miles, with cases as low as 30,000 miles on a 2021 Highlander (Autoblog, 2026). Replacement quotes run from $7,400 to over $9,000 (Autoblog, 2026; Autonoción, 2026).

There is a specific kind of frustration that comes with this defect. You bring the vehicle in. The service advisor drives it, cannot reproduce the shudder, writes “operating as designed,” and hands you the keys. You leave feeling like you imagined it. Three months later the same advisor quotes you nine grand.

Write down every visit. The repair order you almost threw away is the single most valuable document in a lemon law claim.

Class Action Versus Individual Lemon Law Claim, and Why the Order Matters

An individual lemon law claim almost always pays more than a class action share, and filing one usually requires you to opt out of the class.

The mechanics are simple. If a class gets certified and you do nothing, you are in it, and you are bound by whatever the settlement says. Accepting a class settlement generally releases the claims you could have brought yourself. Owners with strong individual cases opt out, which the class notice will tell you how to do.

The trade is real. A class action costs you nothing and takes no effort, and it might pay you a few hundred dollars in three years. An individual claim takes paperwork and might return the price of the vehicle. Our guide on how the lemon law works walks through the process, and our Chevy Equinox class action breakdown shows how the same decision plays out on another defect.

How California Lemon Law Applies to a Toyota Transmission Defect

California’s Song-Beverly Consumer Warranty Act requires a manufacturer to repurchase or replace a vehicle it cannot repair after a reasonable number of attempts, and a failing transmission qualifies on its face.

The statute gives you a presumption in your favor under Civil Code § 1793.22(b) if the problem shows up within 18 months or 18,000 miles, whichever comes first, and any of the following is true.

• The dealer made four or more repair attempts for the same defect.
• The dealer made two or more attempts for a defect likely to cause death or serious injury.
• The vehicle was out of service for repair for 30 or more cumulative days.

Missing that window does not end your case. The presumption is a shortcut, not a gate. Claims still succeed outside 18 months when the repair history shows the manufacturer had a fair chance and did not fix the problem.

Two features make California worth the paperwork. The manufacturer pays your attorney fees and costs when you win under Civil Code § 1794(d), so representation costs you nothing out of pocket. And a willful failure to repurchase exposes the manufacturer to a civil penalty of up to twice your actual damages.

For the full walkthrough, see our page on how a car qualifies for lemon law in California and our guide to California lemon law for new cars.

The 2025 and 2026 Rule Changes That Affect Your Filing Deadline

California changed its lemon law procedure with AB 1755, signed September 29, 2024, and cleaned it up with SB 26, signed April 2, 2025. Two changes matter to anyone with a Toyota transmission problem.

The filing deadline is now defined: A claim must be filed within one year after the express warranty expires, and no later than six years from the date the vehicle was originally delivered (Bowman and Brooke, 2025). Count from your delivery date, not from the day the transmission failed.

A written pre-suit notice may be required: Since April 1, 2025, a consumer covered by the new procedure must send the manufacturer written notice at least 30 days before filing suit, including vehicle details and repair history. The manufacturer then has 30 days to offer restitution or replacement and 60 days from the notice to complete it (California Department of Consumer Affairs, 2025).

Here is the part most articles skip. The new procedure is opt-in. It applies only to manufacturers that elect to be governed by it, and the Department of Consumer Affairs publishes the list of participating manufacturers each year by December 15 (California Department of Consumer Affairs, 2025). Before you send anything, check whether Toyota is on the current DCA list of participating manufacturers. Sending the wrong notice to a manufacturer that did not opt in wastes 30 days you may not have.

Deadlines in this area turn on specific dates on your paperwork. Confirm yours with a lawyer rather than an article.

What to Do Right Now If Your Toyota Transmission Is Failing

Six steps, in order. None of them requires a lawyer to start.

1. Get the complaint on paper today: Book a service appointment and describe the symptom in the exact words you would use to a friend. Shudder at 40 mph. Two-second delay from a stop. Ask for a copy of the repair order before you leave, even when the technician finds nothing. “Could not duplicate” on a dated repair order is still evidence that you reported it.
2. Collect every record you already have: Purchase or lease contract, window sticker, every repair order, every rental or loaner receipt, and the dates the vehicle sat at the dealership. Photograph the odometer at each visit.
3. Check your VIN against the federal database: Run it at nhtsa.gov/recalls and on Toyota’s owner recall lookup. Do this again in six months. Recall status changes.
4. File a complaint with NHTSA: Submit it at nhtsa.gov/report-a-safety-problem. Complaint volume is what opens federal investigations, and your filing becomes a public record the class action lawyers can point to.
5. Confirm what your warranty still covers: Toyota’s basic coverage runs 36 months or 36,000 miles, and the powertrain warranty runs 60 months or 60,000 miles (Toyota, 2026). A transmission sits under the powertrain. Read our guide on what voids a car warranty before anyone tells you an aftermarket part disqualifies you, because most of the time it does not.
6. Have the file reviewed before you accept anything: Do not sign a goodwill repair agreement, a release, or a class settlement claim form until someone has read your repair history against the statute. Signing the wrong document can close the door on a buyback worth many times the offer in front of you.

Common Mistakes That Sink Toyota Transmission Claims

• Skipping the repair order: Verbal complaints do not exist legally. If it is not on a dated repair order, a manufacturer will argue you never reported it.
• Waiting for a recall: No recall exists for the UA80, and waiting burns your warranty and your filing deadline at the same time.
• Paying for the repair out of pocket without a fight: A $9,000 receipt is useful evidence, and it is also $9,000 you may have been able to avoid by pushing the claim first.
• Assuming a used vehicle is excluded: California protections can extend to vehicles still covered by the original manufacturer warranty. See does lemon law apply to used cars.
• Staying in the class by default: Doing nothing is a decision. If a settlement is approved and you did not opt out, your individual claim may be gone.
• Letting the deadline run: One year after warranty expiration, six years from delivery. Both clocks run whether or not you are watching them.

Frequently Asked Questions About the Toyota 8 Speed Transmission Lawsuit

Is there a class action lawsuit against Toyota for the 8-speed transmission?

Yes. Three class actions were filed between December 2025 and February 2026 over the UA80 eight-speed automatic transmission, including LeBoutheller v. Toyota Motor Sales U.S.A., Inc., No. 4:25-cv-01389 in the Eastern District of Texas and Pszwaro et al. v. Toyota Motor Sales U.S.A., Inc. in the District of New Jersey, filed February 17, 2026. No class has been certified, and no settlement exists.

Which Toyota models are named in the transmission lawsuit?

The complaints name the 2017 and newer Highlander, 2023 and newer Grand Highlander, 2019 and newer RAV4, 2017 to 2024 Camry, 2017 to 2020 Sienna, and 2018 and newer Avalon, plus the Lexus ES 250 and ES 350, RX 350, NX 250 and NX 350, and TX 350. Year ranges differ slightly between complaints.

Is the Toyota Tacoma part of the 8-speed transmission lawsuit?

No. The Tacoma uses a different eight-speed automatic and is not named in the UA80 class actions. Toyota addressed the 2024 Tacoma transmission separately in service bulletin T-SB-0094-24, which instructs dealers to replace the transmission and torque converter free of charge under the 60-month powertrain warranty.

Has Toyota issued a recall for the 8-speed transmission?

No. NHTSA has not issued a safety recall for the UA80 transmission. Toyota has published multiple technical service bulletins since 2017, including TSB-0194-17 and TSB-0197-17 in March 2017, but a bulletin is a repair instruction to dealers rather than a recall.

How much does a Toyota UA80 transmission replacement cost?

Out-of-warranty replacement quotes reported in the lawsuits and press coverage range from about $7,400 to more than $9,000 including parts and labor (Autoblog, 2026; Autonoción, 2026). Some owners report the replacement unit developing the same symptoms.

Can I file a California lemon law claim if my Toyota is out of warranty?

Often yes. What matters is whether the defect first appeared and was reported while the vehicle was still under the express warranty. A claim must be filed within one year after the warranty expires and no later than six years from original delivery.

Do I have to pay a lawyer to bring a lemon law claim in California?

No. Under California Civil Code § 1794(d) the manufacturer pays the consumer’s attorney fees and costs on a successful claim, so lemon law representation is handled at no out-of-pocket cost to the owner.

Should I opt out of the class action to file my own case?

If you have a documented repair history under warranty, opting out and filing individually usually produces a much larger recovery than a class settlement share. Have your records reviewed before the opt-out deadline in the class notice, because that deadline is firm.

What if the dealer says the shudder is a normal characteristic?

Ask for the statement in writing on the repair order and keep the copy. A documented “operating as designed” response on a defect that later requires a transmission replacement is useful evidence that the manufacturer had notice and did not repair the vehicle.

Key Takeaways

• Three federal and state class actions over Toyota’s UA80 eight-speed transmission are active, none certified, none paying yet.
• The Tacoma’s eight-speed is a separate unit with a separate remedy under service bulletin T-SB-0094-24.
• The single most valuable thing you can do this week is get your symptom written onto a dated repair order.
• California owners with a documented repair history usually recover far more through an individual lemon law claim than through a class settlement.
• Two deadlines govern your claim. One year after warranty expiration, and six years from the date the vehicle was delivered.

Talk to Consumer Protection Law Group About Your Toyota Transmission

Consumer Protection Law Group is a California law firm that represents vehicle owners in lemon law claims against manufacturers. The firm reviews repair histories at no charge, and California law requires the manufacturer to pay attorney fees and costs on a successful claim, so there is no out-of-pocket cost to the owner.

Bring your repair orders, your purchase or lease contract, and the dates your vehicle sat at the dealership. That file is usually enough for a first assessment.

Request a free case review or read our frequently asked questions about the claim process. You can also see how we handle Toyota lemon law claims and what California lemon law covers.

This article is general information about consumer warranty law and is not legal advice. Outcomes depend on the specific facts of each vehicle and repair history.