Toyota agreed to settle a class action lawsuit over headlights in Prius hybrids

Article by Christian A., on January 21, 2011

In a recent filing in a Los Angeles federal court, Toyota Motor Corporation sought the dismissal of a securities-fraud lawsuit by investors who claim the automaker misled them by not disclosing acceleration-related defects that it allegedly knew about.

Toyota said that the shareholders' case fails to state a claim under U.S. securities law. The company said plaintiffs’ “misleading” statements are puffery or “highly generalized statements about the quality and safety of Toyota vehicles” that securities markets don’t rely on.

Toyota said the class action is the plaintiffs’ attempt to “mutate” product liability, consumer and automotive industry regulatory claims into securities fraud.

Toyota added that similar to the other allegedly false and misleading statements cited by the investors, the complaint does not identify the people who made them and does not cite any facts to support that those people knew the statements were false or misleading, as is required under U.S. securities law.

In their Oct. 4, 2010 consolidated complaint, the shareholders, led by the Maryland State Retirement and Pension System, said that internal documents show the Toyota City, Japan-based company intentionally hid unintended sudden acceleration problems in the U.S.

The plaintiffs said Toyota was aware about the defects as early as 2000 and in an effort to avoid vehicle recalls, the company “stonewalled” regulators. [via latimes]

If you liked the article, share on:

Comments

Recommended

Hyundai is introducing a new 2018 Accent that is not only wider and longer, but is now also sporting a new look that is more serious than the previous model....
by - February 20, 2017
Fans and enthusiasts of the BMW M2 in the United States could now rejoice. This comes as their favorite BMW M2 is getting a limited edition version as prepped by...
by - February 20, 2017
Carmakers usually leave us thirsty for information on whether they would introduce a new, refreshed or face-lifted vehicle and on when they intend to launch it. There are reasons for...
by - February 20, 2017
Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries