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Judge Grants Partial Dismissal In Toyota Lawsuit

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U.S. District Judge Dale Fischer in Los Angeles rejected most of the claims in the federal securities lawsuit against Toyota Motor Corp., alleging the company inflated its stock price by concealing problems with its vehicles.

The plaintiffs in the case are seeking class-action status for the lawsuit, and claim that Toyota misrepresented or hid facts related to the Toyota and Lexus recall of up to 10 million vehicles.

Judge Fischer wrote in her ruling that “Nothing in the complaint permits a strong inference that any of the defendants intentionally misled investors about Toyota’s corporate strategy with regard to quality and safety.”

The judge also dismissed alleged Japanese security law violations saying “Respect for foreign law would be completely subverted if foreign claims were allowed to be piggybacked into virtually every American securities fraud case,” Reuters reported.

The lead plaintiff in the case, The Maryland State Retirement and Pension System is represented by Attorney General Douglas Gansler, whose office said “We respect the judge’s decision, but as lead plaintiffs in the case we are prepared to move forward and we still plan to recover significant damages.”

The plaintiffs have until July 28 to filed an amended lawsuit.

 

breakinglawsuitnews.com disclaimer: This article: Judge Grants Partial Dismissal In Toyota Lawsuit was posted on Tuesday, July 12th, 2011 at 5:57 pm at breakinglawsuitnews.com and is filed under Uncategorized.

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