Toyota Motor Corp. has agreed to pay $25.5 million to settle a U.S. shareholder class action lawsuit accusing the company of not disclosing safety and quality issues related to recalls and reports of unintended vehicle acceleration in 2010. The settlement must be approved by U.S. District Judge Dale Fischer in Los Angeles.
Toyota investors began suing Toyota for securities fraud in February 2010 after numerous reports of accidents related to unintended acceleration by Toyota vehicles surfaced. Toyota subsequently recalled up to 10 million Toyota or Lexus vehicles at a cost of $5 billion. Investors, led by the Maryland State Retirement and Pension System, claimed Toyota concealed problems in its vehicles. The misconduct resulted in a $30 billion drop in the company’s stock market value. In July 2011, Judge Fischer ruled that investors, who had bought Toyota common stock, couldn’t sue under Japan’s Financial Instruments and Exchange Act.
That ruling limited the case to covering claims just of investors in Toyota’s American Depository Shares. A motion to certify the class had been fully briefed at the time of the settlement. The Maryland pension fund estimates the maximum amount of net damages investors could obtain at trial would be $124 million. The law firm Bernstein Litowitz Berger & Grossman acted as lead counsel for the Plaintiffs. The case is In Re Toyota Motor Corporation Securities Litigation, U.S. District Court, Central District of California, No. 10-cv-00922.
Source: Chicago Tribune
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.