In a move that should allow the automaker to put one of the last remnants of its unintended-acceleration recall dilemma in the rearview mirror, Toyota has agreed to pay $25.5 million to settle an investor lawsuit from shareholders who claimed that they were adversely impacted by the recalls.
The class-action lawsuit, which was spearheaded by the Maryland State Retirement and Pension System, alleged that Toyota failed to disclose safety issues related to the unintended acceleration issue, eventually leading to a $30 billion drop in the company's stock market value.
The settlement will cover all U.S. Toyota shareholders who purchased stock between May 2005 and Feb. 2, 2010, according to an Automotive News report. It still requires official approval from U.S. District Judge Dale Fischer.
Toyota spokesman Mike Michels said the settlement was not an admission of wrongdoing, but rather a way to avoid the “expense, distraction and uncertainty of further proceedings."
"We are pleased to be turning the page on this legacy legal issue, pending court approval, and believe this is a reasonable outcome," Michels said.