Toyota Close to $1 Billion Deal to Settle U.S. Probe - WSJ
February 8, 2014 3:15 PM EST
Toyota Motor Corp(7203.T) is close to a deal to pay $1 billion to settle a U.S. criminal investigation into how it disclosed customers' complaints about unintended acceleration years ago, the Wall Street Journal cited anonymous sources as saying on Friday.
A worker sets up a display near the Toyota booth in preparation for the 2014 Consumer Electronics Show (CES) at the Las Vegas Convention Center in Las Vegas, Nevada, January 4, 2014. REUTERS/Steve Marcus
Toyota could reach a deal with U.S. authorities within weeks, the Journal cited the sources as saying, ending a four-year probe into one of the Japanese automaker's most embarrassing international episodes.
The deal under negotiation could still collapse, or the settlement amount could change, the sources were cited as saying.
Toyota was not immediately available for comment outside normal office hours.
Prosecutors in the Manhattan U.S. attorney's office are looking into whether Toyota made false or incomplete disclosures to U.S. regulators about possible car defects, the Journal cited people familiar with the matter as saying. They are also looking into possible mail and wire fraud violations connected to alleged false disclosures, the Journal said without elaborating.
Toyota is facing hundreds of lawsuits over acceleration issues, which gained public attention after the deaths of a California highway patrolman and his family that was reportedly caused by the unintended acceleration of his Lexus.
That prompted the Japanese automaker to recall millions of vehicles starting in 2009. At the time, the recall and resulting lawsuits were a surprise for a company long associated with quality and reliability.
Toyota has been hit with more than 200 proposed class action and 500 individual lawsuits alleging personal injuries or property damage caused by the alleged acceleration problems.
The Japanese company has maintained the electronic throttle control system was not at fault, blaming ill-fitting floor mats and sticky gas pedals. A study by federal safety officials at the National Highway Traffic Safety Administration and NASA found no link between reports of unintended acceleration and Toyota's electronic throttle control system.
Most Popular Slideshows
- Gennady Golovkin Next Fight Options: Canelo Alvarez, Miguel Cotto Or Julio Cesar Chavez Jr.
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Travel Alert: Over 200 Canadians Infected with Mosquito-Borne Chikungunya Virus
- Economic Growth In US And Sub-Saharan Africa Allay 2015 Recession Fears
- US Dedicates 5 Airports for Travellers From Ebola-Stricken Nations, Lawmakers Want Travel Ban
- Canadian Ebola Drug: Tekmira Firm Starts Limited Manufacturing of Vaccine, Available By December; Shares Up
- WHO Races to Release Ebola Serum in 2 Weeks, Vaccines in January
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Google Nexus 6 vs. iPhone 5S: 4 Important Things to Consider Before Switching to Android Lollipop
- Swedish Military Spots ‘Russian Submarine’ Off Stockholm Coast, An Alarming ‘Security Game Changer’