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Given the amount of money at stake here, I would definitely find a good lawyer. As others have mentioned: (1) there have been instances of oil starvation on early models from assembly sealant blocking oil passageways, and (2) there have also been instances of variable valve timing issues leading to oil starvation (see video below starting from 4:30; Subaru/Toyota have done a number of revisions on this part).
Obviously no guarantees that either of those was the cause of failure, but perhaps your lawyer can present those issues to Toyota and get a goodwill or partial cost engine replacement for you.
[ame]http://youtu.be/7iw1Pdln8eI?t=4m30s[/ame]
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