Toyota Motor Corp. has agreed to pay $25.5 million to settle a suit brought by its shareholders accusing the company of failing to disclose safety and quality issues with some of its vehicles. The suit is related to the recalls and unintended acceleration reports dating back to late 2009.
A judge in Los Angeles must approve the settlement, which will close one chapter in the automaker’s ongoing legal issues surrounding the acceleration issues.
Toyota has been in hot water since recalling millions of vehicles three years ago, after receiving claims regarding sudden acceleration caused by problems with the vehicles’ gas pedal and floor mats. Consumers and shareholders alike have been filing suits against the company ever since.
In the end, the company recalled 10 million Toyotas and Lexus vehicles, costing the company about $5 billion. The company’s shareholders claimed Toyota concealed the problems, and when they were discovered, Toyota’s value dropped by $30 billion.
“We are pleased to be turning the page on this legacy legal issue, pending court approval, and believe this is a reasonable outcome,” Toyota Spokesman Mike Michaels said in a statement. The company is admitting no wrongdoing.
Read more about this case on Thomson Reuters.
For more InsideCounsel coverage of Toyota’s ongoing litigation, see: