Hoping to put its long saga of recalls and reports of unintended vehicle acceleration to bed, Toyota has agreed to pay $25.5 million in order to settle a U.S. shareholder class action lawsuit.
The settlement must first be approved by U.S. District Judge Dale Fischer, but if it is approved, it will resolve a major lawsuit that has troubled the Japanese automaker for the last couple of years. Toyota did stress that the settlement doesn’t admit to any wrongdoing but rather it was “to avoid the expense, distraction and uncertainty of further proceedings,” according to Toyota spokesman Mike Michaels.
Toyota investors began suing the automaker for securities fraud in February 2010 when reports of accidents related to unintended acceleration began surfacing. The automaker ended up recalling up to 10 million vehicles at a cost of $5 billion.
[Source: Automotive News]