Toyota to Pay $25.5 Million to Settle Class Action Lawsuit
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]
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
More by Jason Siu
Comments
Join the conversation