Toyota Motor Corp. has decided to settle a shareholder class action lawsuit for $25.5 million. The suit began in early 2010 after reports of accidents attributed to unintended acceleration cropped up. The class action accused Toyota of improperly disclosing "safety and quality issues" related to those reports.

The company later recalled as many as 10 million Toyota and Lexus vehicles in a program estimated to cost $5 billion. The public relations fallout dragged down the company's stock value by $30 billion.

The Maryland State Retirement and Pension System, a member of the lawsuit class, had previously estimated a successful trial could have ended with as much as a $124 million payout.

If you hold Toyota stock, though, don't start spending your winnings just yet. First, common stockholders were disqualified from the suit in 2011. Only claims by investors in Toyota's American Depository Shares are covered. Second, the settlement is only a proposal for now and must still be approved by US District Judge Dale Fischer.

A Toyota spokesman said in a statement that the company is "pleased to be turning the page on this legacy legal issue." The plaintiffs' counsel declined comment.



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    • 1 Second Ago
  • 9 Comments
      BK
      • 2 Years Ago
      What a shame. Welcome to the USA where morons who can't drive get paid! Although, maybe Toyota had to see this coming given that their average Camry owner is a half dead zombie elderly driver. You don't see Lotus owners hit the wrong pedal- and they all have three pedals!
      kontroll
      • 2 Years Ago
      slowly but surely the pigs at toyoda are admitting that they are crooks and liars and their so called cars are POS
      carguy1701
      • 2 Years Ago
      Really? BS suit was BS.
      • 2 Years Ago
      [blocked]
      RocketRed
      • 2 Years Ago
      25m. That's less than Toyota's legal bills probably for this defense and a drop in the bucket it has paid to beat back all of these ludicrous baseless accusations. It's still real money, but given the daily cost of this kind of litigation, 25m is probably just another year of legal bills to Toyota as the plaintiffs' lawyers continuing their delaying and harassing tactics, meaning it was really as little as Toyota could get away with. As for the shareholders, yeah, did your lawyers say you would be getting 124m? I guess that's 100 million dollars of puffery. The plaintiff lawyer vultures will be paid out of the settlement, of course, so don't worry about those poor saps going away empty handed.
      imag
      • 2 Years Ago
      Hey - who cares if it was all fake? At least the lawyers got their money, and that's all that matters.
      MAX
      • 2 Years Ago
      Admission of guilt. The software reflash damns them.
      jtav2002
      • 2 Years Ago
      I wish I could sue companies every time I lose money in the stock market. It's a god damn investment. There's risk. What about all the people that lost all their 401k when Enron went under.
      JohnM
      • 2 Years Ago
      Audi seen nodding with complete understanding.