Toyota’s $1.2 Billion Case to be Dismissed

On Tuesday, the U.S. Department of Justice asked a federal judge to dismiss a criminal charge against Toyota Motor Corp. (NYSE: TM) after the company completed 3 years of monitoring which was part of a $1.2 billion settlement over claims of sudden unintended acceleration in their vehicles. The acceleration problems claims took place in 2009 and 2010 and the request to dismiss these claims is to be filed in federal court in Manhattan.

Over the past 3 years, Toyota claimed that they have been working hard to make the company stronger through continuous improvement. However, the company misled regulators and provided inaccurate information to Congress in the scandal that was linked to at least 5 deaths. Criminal charges were not filed against current or former Toyota executives.

The automaker has made some changes to their safety practices after the recall crisis in 2010 where half of their vehicle sales were halted. Toyota has also settled other related suits including an agreement that covered about 22 million current and former Toyota owners over sudden acceleration claims that totaled up to $1.63 billion. Some civil claims are still pending in California.

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