Toyota will pay $25.5 million to shareholders claiming they were harmed by the company’s recall of millions of vehicles for unintended acceleration in 2009-2010.
According to the proposed settlement, which was filed in U.S. District Court in Los Angeles, there are ‘tens of thousands’ US Toyota shareholders who have bought stock between May 2005 and February 2nd, 2010. The shareholders accuse the automaker of concealing the problems and claim that they would not have purchased the stock if they knew about this issue.
The first series of suits were filed in February 2010 and lawyers for the shareholders said that the maximum sum they could recover was $124 million if the case went to trial. From 2009 to 2011 Toyota recalled 12.4 million vehicles globally for unintended acceleration issues related to floor mats. From the total of 12.4 million, 10.2 million vehicles were recalled in the US.
“Toyota has agreed to resolve shareholder claims related to previous recalls, with no admission of wrongdoing, in order to avoid the expense, distraction and uncertainty of further proceedings. We are pleased to be turning the page on this legacy legal issue, pending court approval, and believe this is a reasonable outcome,” said Toyota spokesman Mike Michels.