US announces $1.2b Toyota settlement

US announces $1.2b Toyota settlement

The company will admit that it misled US consumers by making deceptive statements about two safety issues affecting its vehicles.



By (AP)

Published: Wed 19 Mar 2014, 8:11 PM

Last updated: Fri 3 Apr 2015, 5:05 PM

The US has reached a $1.2 billion settlement with Toyota Motor Corp. and filed a criminal charge alleging the Japanese automaker defrauded consumers by issuing misleading statements about safety issues in Toyota and Lexus vehicles.

Under the agreement, announced on Wednesday by US Attorney-General Eric Holder, the company will admit that it misled US consumers by making deceptive statements about two safety issues affecting its vehicles. As a result, Toyota will pay a $1.2 billion financial penalty under a “deferred prosecution agreement.”

It is the largest penalty of its kind imposed on an automotive company by the US, Holder said.


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