Toyota agreed late Tuesday to pay a reported $25.5 million to settle a U.S. shareholder lawsuit according to Reuters.
The class action lawsuit is accusing the company of failing to disclose safety and quality issues related to recalls and "reports of unintended vehicle acceleration" starting in 2010. The cash settlement was documented in detail by the plaintiffs in U.S. District Court.
"We are pleased to be turning the page on this legacy legal issue, pending court approval, and believe this is a reasonable outcome," said Mike Michaels, a spokesman for Toyota, to Reuters.
The cash settlement must now be approved by U.S. District Judge Dale Fischer in Los Angeles, California and if approved, the settlement would end a huge lawsuit that has bothered Toyota for two years.
In July 2011, Judge Fischer prepared the case and determined investors who bought into Toyota's common stock could not sue the company under Japan's Financial Instruments and Exchange Act according to the release. The ruling was a win for the company and limited the case to covering just issues from investors in Toyota's American Depository Shares.
Michaels stated that the settlement did not contain an admission that the company did anything wrong, but just wanted to "avoid the expense, distraction and uncertainty of further proceedings." The plaintiffs lawyer Blair Nicholas hasn't commented on the cash settlement yet.
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