I don't believe that is true. The VVTi version of the 1MZ-FE engine is apparently an interference type.
The older non VVTi versions of that engine, used in older Toyota Camrys for example, were non-interference and therefore damage would not occur.
Most, if not all, Toyota engines up to around 1999-2000 were non-interference however due to higher compression ratios most of the modern engines are interference types.