Toyota facing $1B settlement with feds over recall disclosuresby Justin King
Toyota is preparing to pay a $1 billion settlement to avoid federal charges over recall disclosures, reports claim.
Toyota is reportedly preparing to pay more than $1 billion to avoid federal criminal charges over recall disclosures, unnamed sources have told the Wall Street Journal (sub. required).
The Japanese automaker is said to be facing allegations of false disclosures to the Department of Justice during an investigation surrounding the unintended-acceleration recall.
The settlement has yet to be officially confirmed by Toyota or the government, however it is expected to be tied to a deferred prosecution agreement with additional terms that the company must meet to avoid criminal prosecution further down the road.
Toyota paid a similar amount to settle a class-action lawsuit in civil court, though the company still faces other lawsuits over wrongful death and other improprieties in its handling of the debacle.
Despite the settlement and losses in civil court, the automaker has denied any wrongdoing and claims the throttle control systems were independently verified to be completely safe.