Toyota Must Face Lawsuit Over Hybrids’ Alleged Brake Defects

Toyota Motor Corp. and related companies lost their bid to dismiss proposed class litigation alleging they concealed a flaw that can cause systemic brake failure in certain Prius, Camry, and Avalon hybrid vehicles, according to a Texas federal court ruling.

Car owners in several states allege Toyota didn’t properly design and manufacture the vehicles’ brake booster pump assemblies, which can keep the brakes from engaging when the pedal is depressed.

The litigation is proceeding in the U.S. District Court for the Eastern District of Texas, which declined to dismiss the master complaint Wednesday. Plaintiffs plausibly alleged claims for breach ...