Judge appoints contradictors over $244 million funder cut in Toyota's $750 million DPF settlement

The judge changed course to appoint the barristers on 21 October 2026, Lawyerly reported, as the court considers the funder's proposed $244 million cut. Toyota Australia's agreement to pay $750 million, reported by CarExpert on 12 October, settles two class actions over defective diesel particulate filters fitted to HiLux, Prado and Fortuner vehicles.

The settlement covers 264,170 affected vehicles, and any payout to eligible owners depends on how much the litigation funder takes first. The $750 million is nearly double Toyota Australia's record $380 million after-tax profit for the year ended 31 March 2026, CarExpert reported.

Toyota lost at trial, at the Full Federal Court and at the High Court, according to Yahoo Finance.

What the $750 million covers

The proceedings cover HiLux utes and Prado and Fortuner SUVs acquired in Australia between 1 October 2015 and 23 April 2020, including some vehicles later resold by their original owners.

Two groups are involved. The Williams class action began in 2019 and covers qualifying buyers from the original period, including some second-hand buyers. The Taylor class action, launched in July 2025, covers owners who bought privately from original owners between 24 April 2020 and 31 July 2025 and still own the vehicle.

All the affected vehicles used the 2.4-litre 2GD-FTV or 2.8-litre 1GD-FTV turbo-diesel. The 2.8-litre engine is still sold in Australia in the HiLux, Prado and LandCruiser 70 Series, but Torquecafe reported it is no longer affected by the defect.

A DPF traps soot from diesel exhaust and burns it off in a process called regeneration. In the affected vehicles the filters clogged, producing foul-smelling white smoke, higher fuel consumption and repeated unscheduled inspections and repairs.

How the compensation rate came down and back up

The Federal Court found in April 2022 that the vehicles were not of acceptable quality and that Toyota engaged in misleading or deceptive conduct, and assessed the reduction in value at 17.5 per cent of average retail price. The Full Federal Court cut that to 10 per cent in March 2023 after Toyota's appeal. In November 2024 the High Court held the assessment should not have been reduced to 10 per cent, but sent the matter back to the Federal Court to reassess compensation in light of the availability of an effective repair.

A later supplementary report found the 2020 field fix effective, according to Yahoo Finance.

Torquecafe reported that calculations at the time of the 10 per cent ruling projected Toyota could have faced more than $1.3 billion in compensation costs, compared with the $750 million settlement. The Examiner reported the deal compares with a previously rumoured $2 billion figure. The High Court also held that owners who sold their vehicles lost reduction-in-value damages, though they could still claim consequential losses, according to Yahoo Finance.

Record settlement

Lawyerly described the $750 million as a record across the two Toyota class actions.

Yahoo Finance reported that both cases had been listed for a two-week hearing starting 19 October 2026, at which a judge would have worked out what Toyota owed.

What happens next

The agreement remains subject to approval by the Federal Court of Australia, Toyota said. Affected participants should contact their legal representatives for details on eligibility and what the deal means for their case.