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

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 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