Toyota Shareholders Sue Over Unintended Acceleration Recall Stock Slide Toyota Motor (TM) may be gaining ground in repairing the 8 million vehicles it recalled for unintended acceleration problems, but it still faces a legal battle in the form of a class-action lawsuit by U.S. shareholders for failing to disclose what it knew about the defects.

Stockholders, led by the Maryland State Retirement and Pension System, filed a consolidated complaint Monday in federal court in Los Angeles alleging the world's largest automaker concealed problems related to its cars accelerating out of control, Bloomberg News reported.

Citing Toyota's own internal documents, the group of investors said the car company knew about the defects as early as 2000 and "stonewalled" regulators to avoid recalls.

"As government regulators and the media began to focus on this serious safety problem in the Toyota vehicles, defendants initially denied that any unintended acceleration problem existed, despite a plethora of internal evidence to the contrary, and instead blamed driver error and media-induced publicity," the investors said, according to Bloomberg.

The group alleges Toyota shares have lost $30 billion in market value because of recalls related to unintended acceleration.

The Maryland pension fund seeks to represent investors who bought Toyota shares in the form of American depository receipts from May 10, 2005 until Feb. 2, 2010, shortly after Toyota announced the recalls. It is also seeking to represent shareholders who bought common stock during the same period through claims under Japanese law.

Toyota responded to the complaint via email, telling Bloomberg that the shareholders' assertions were unfounded.

The automaker's recall of vehicles related to unintended acceleration has involved two separate campaigns: one to shave gas pedals to prevent them from getting hung up on rubber floor mats; and a second to repair sticky gas pedals.

The latter recall was the subject of a record $16.4 million fine by U.S. regulators for Toyota's failure to disclose quickly enough what it knew about the defect.

In premarket trading Tuesday on Wall Street, Toyota shares were down fractionally to $71.85 each. The stock is down about 14% for the year.

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rhaltenhoff

I have a 2001 Sequoia. Its brakes have always been very rough. I mean that the car 'bucks' when the brakes are applied. My brother thinks it is the Antilock Brake System, quickly grabbing and releasing the discs. If it is the ABS then it must be a computer problem. I took it to a dealer and they said it would cost $2,000 to fix it. This does not seem right, and I am becoming increasingly concerned as I read more and more about Toyota's problems. Can someone help direct me to where I can get attention for this? I am rhaltenhoff@aol.com. Thank you, Rick

October 21 2010 at 1:00 PM Report abuse rate up rate down Reply
shar

CARS are machines...and Machines Breakdown and need to be repaired. As many times as my computer or sofeware mal-fuctions I should have a recall in my mail box to fix it for free. I've been driving for over 49 years and once owned almost every sports car made in England... LOVED them...they were fun.. but at no time did I think they were perfect. You had to fiddle with them all the time to keep them on the road. Our expectations are way too high today and that's why we have to pay $25K plus for a new car... Heck my first House only cost $19K!

October 11 2010 at 9:45 AM Report abuse +2 rate up rate down Reply
George

You guys go ahead and buy Japanese cars I am 84 years old I have been buying USA cars for over 65 year and as long as I am alive I will not buy Japanese cars They tried to kill me in WW2

October 10 2010 at 6:52 PM Report abuse +2 rate up rate down Reply
dwheat9003

Transmission oil yucki operation totaly awry

October 08 2010 at 4:27 AM Report abuse rate up rate down Reply
dwheat9003

Tries only yet outa transportation afterwords

October 08 2010 at 4:17 AM Report abuse rate up rate down Reply
dwheat9003

Totaly old, you're only ticked afterwords..................... How's that Tom?

October 08 2010 at 4:04 AM Report abuse rate up rate down Reply
cirujo

1. Buying stock in any company is ALWAYS a risk. There is no guarantee that your investment will pay off in the big dividends you hope for and dream of. There is simply no way of guaranteeing that your stock in the company will soar and you will become rich from your investment. 2. If your pension fund manager decided to sink a great deal of your pension funds into ONE company's stock in the hopes that it would rise and reap wonderful benefits for you and all the other pension recipients, shame on him/her--and shame on you for allowing him/her to invest all your money in ONE company instead of diversifying your assets among a variety of potential options to maximize your potential return. If you are disgruntled with your return on investments, you should be looking at your pension fund manager for answers, not at the company he/she decided to invest most of your pension fund in. Better yet, take charge of your own retirement funds and make your own decisions how to best invest them. 3. Your choice of the car you drive is completely up to you. If you absolutely love an American car and it fits all your needs and requirements, buy it. If you absolutely love a foreign car that fits all your needs and requirements, buy it. By all means, buy the car (truck, or SUV) that suits you best. Forget all the political bs--buy the vehicle that suits you best. In my large extended family we have had many vehicles--some domestic, some foreign--all have been capable of bringing us from point A to Point B. Some did it better that others. In my experience, my cute little Pontiac Sunfire convertible was wonderful at first but eventually spent more time in the repair shop than on the road, while my newer Toyota Corolla spends its time zipping me around the town, city, and country without worrying about torn head gaskets and fuel lines. Of course, it's the newness that counts--pick a good new (or slightly used) car and make sure it has the staying power to last you at least 100,000 miles. Any car that is on its last legs should probably not be bought.

October 08 2010 at 3:35 AM Report abuse -1 rate up rate down Reply
jimjdb5591

Replace "shareholder" with bottom feeding lawyers and you have the real story. No money in suing banks any more boys? Japan better watch out for Hyundai, never mind China

October 08 2010 at 3:29 AM Report abuse +3 rate up rate down Reply
monseigneurdev

Japanese are probably feeling sandwiched by the Americans and the Chinese...squeezed and bitten.

October 08 2010 at 1:59 AM Report abuse +1 rate up rate down Reply
DB

Face it..Toyota wanted to to be at the top and now they have it. They also now see how difficult it is to stay at the top! Their quality has been slipping for years now in their push to become" The World's Largest Automaker". Trust me I have been in the business now for over 20 years and have seen it first hand. Technicians that work on them day in and day out tell me the same thing. Domestics have come a long long way and have greatly improved. However, do your homework and you will find that alot of our "domestic" cars are built and assembled in Mexico,etc. Bottom line...Investigate thoroughly and maintain your vehicles and they will keep you happy for many many years to come.

October 08 2010 at 1:12 AM Report abuse +2 rate up rate down Reply