Toyota to settle $25.5M US investor lawsuit over unintended acceleration fallout

November 15, 2012 by · Leave a Comment 

Filed under: Government/Legal , Recalls , Lexus , Toyota Toyota Motor Corp. has decided to settle a shareholder class action lawsuit for $25.5 million. The suit began in early 2010 after reports of accidents attributed to unintended acceleration cropped up. The class action accused Toyota of improperly disclosing “safety and quality issues” related to those reports. The company later recalled as many as 10 million Toyota and Lexus vehicles in a program estimated to cost $5 billion. The public relations fallout dragged down the company’s stock value by $30 billion. The Maryland State Retirement and Pension System, a member of the lawsuit class, had previously estimated a successful trial could have ended with as much as a $124 million payout. If you hold Toyota stock, though, don’t start spending your winnings just yet. First, common stockholders were disqualified from the suit in 2011. Only claims by investors in Toyota’s American Depository Shares are covered.

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Toyota Motor Corp. has decided to settle a shareholder class action lawsuit for $25.5 million. The suit began in early 2010 after reports of accidents attributed to unintended acceleration cropped up. The class action accused Toyota of improperly disclosing “safety and quality issues” related to those reports.

The company later recalled as many as 10 million Toyota and Lexus vehicles in a program estimated to cost $5 billion. The public relations fallout dragged down the company’s stock value by $30 billion.

The Maryland State Retirement and Pension System, a member of the lawsuit class, had previously estimated a successful trial could have ended with as much as a $124 million payout.

If you hold Toyota stock, though, don’t start spending your winnings just yet. First, common stockholders were disqualified from the suit in 2011. Only claims by investors in Toyota’s American Depository Shares are covered. Second, the settlement is only a proposal for now and must still be approved by US District Judge Dale Fischer.

A Toyota spokesman said in a statement that the company is “pleased to be turning the page on this legacy legal issue.” The plaintiffs’ counsel declined comment.

Toyota to settle $25.5M US investor lawsuit over unintended acceleration fallout originally appeared on Autoblog on Wed, 14 Nov 2012 14:01:00 EST. Please see our terms for use of feeds.

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