By Nate Raymond
Nov 13 (Reuters) - Toyota Motor Corp agreed on Tuesday to
pay $25.5 million to settle a U.S. shareholder class action
lawsuit accusing the company of not disclosing safety and
quality issues related to recalls and reports of unintended
vehicle acceleration in 2010.
The proposed cash settlement was detailed in documents filed
by the plaintiffs in the U.S. District Court in Los Angeles.
The settlement must be approved by U.S. District Judge Dale
Fischer in Los Angeles. If approved, the settlement would
resolve a major lawsuit that had dogged Toyota since reports of
its vehicle recalls stole headlines two years ago.
Mike Michaels, a spokesman for Toyota, said in a statement
the settlement contained no admission of wrongdoing. The company
agreed to the accord to "to avoid the expense, distraction and
uncertainty of further proceedings," he said.
"We are pleased to be turning the page on this legacy legal
issue, pending court approval, and believe this is a reasonable
outcome," Michaels said.
Plaintiffs counsel Blair Nicholas declined comment.
Toyota investors began suing Toyota for securities fraud in
February 2010 amid reports of accidents related to unintended
acceleration by Toyota vehicles.
Toyota subsequently recalled up to 10 million Toyota or
Lexus vehicles at a cost of $5 billion.
Investors led by the Maryland State Retirement and Pension
System claimed Toyota concealed problems in its vehicles. The
misconduct resulted in a $30 billion drop in the company's stock
market value.
In July 2011, Judge Fischer pared down the case
substantially by holding that investors who had bought Toyota
common stock couldn't sue under Japan's Financial Instruments
and Exchange Act.
The ruling limited the case to covering claims just of
investors in Toyota's American Depository Shares. A motion to
certify the class had been fully briefed at the time of the
settlement.
In the court papers on Tuesday, the Maryland pension fund
said it estimated the maximum amount of net damages investors
could obtain at trial would be $124 million.
Court documents state that the plaintiffs lawyers will apply
to the court for approval of a contingency fee of up to 12
percent, or $3.06 million, plus up to $2 million in expenses.
The law firm Bernstein Litowitz Berger & Grossman acted as
lead counsel for the plaintiffs.
The case is In Re Toyota Motor Corporation Securities
Litigation, U.S. District Court, Central District of California,
No. 10-cv-00922.
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