The first symptom was a high-pitched whine under throttle. Not a slipping belt or a bad bearing, but something deeper, coming from inside the transmission of a five-year-old Toyota SUV with a reputation for running the long haul.

The owner brought it to the dealership expecting a reasonable, covered repair. What he got instead was a $7,451 estimate and a reminder that he was 7,200 miles past his warranty.

The California plaintiff purchased a new 2020 Toyota Highlander with the 3.5L V6 and Aisin-built eight-speed automatic transmission in December 2020.

By September 2025, the odometer read about 67,200 miles. He explained that a noise appeared consistently when pressing the accelerator.

According to CarComplaints.com, the dealer determined the transmission needed full replacement. The driver reported that Toyota declined coverage because the 5-year/60,000-mile warranty had expired.

Rather than move forward with the repair, he filed a class action lawsuit against Toyota

The owner claimed the replacement transmission offered by the dealer carries the same alleged defects as the original. He also stated the Highlander failed to deliver the quality and reliability he expected, leaving him with diminished vehicle value.

The suit requires a $405 filing fee but seeks more than $5 million in damages. Officially filed in the U.S. District Court for the Central District of California, the case name is Neil Pallaya v. Toyota Motor Sales U.S.A., Inc., et al. He’s represented by Blood Hurst & O’Reardon LLP.

Concerns around Toyota’s eight-speed automatic aren’t new

According to the complaint, excessive heat allegedly accumulates inside the torque converter, burning transmission fluid and prematurely degrading it.

That process reportedly damages the internal clutch system and leads to failure. The suit argues an automatic should hold up for roughly 200,000 miles before major repair, not fail before hitting 70,000.

The filing states internal warranty analytics flagged the transmission as a high-priority problem by early 2017. Toyota issued numerous Technical Service Bulletins between 2016 and 2023 relating to harsh shifts, hesitation, abnormal noise, and torque converter concerns. The affected transmission appears in the Highlander, Grand Highlander, Camry, Sienna, Avalon, RAV4, and several Lexus models.

The lawsuit alleges that Toyota and Aisin allegedly knew of the problem starting in 2015 but didn’t redesign the system. As of now, the Highlander owner claims he’s still driving with the failing transmission, hoping the legal process resolves things before the gearbox quits entirely.