Toyota Deferred Prosecution Agreement

On March 19, 2014, U.S. Attorney General Eric Holder, U.S. Secretary of Transportation Anthony Foxx, U.S. Attorney for the Southern District of New York Preet Bharara, DOT Inspector General Calvin L. Scovel III, current Administrator of the National Highway Traffic Safety Administration David Friedman, and FBI Deputy Director Joe Campbell announced a criminal fraud charge against Toyota Motor Corporation (Toyota) in connection with their role in making available to Toyota Motor Corporation (Toyota) al Highway Traffic Safety Administration (NHTSA) on safety issues in Toyota and Lexus vehicles. In connection with this accusation, the Department of Justice (DOJ) announced a deferred lawsuit agreement with Toyota, in which the company admits to misleading U.S. consumers by concealing two safety issues affecting its vehicles and making misleading statements, each causing some kind of unintentional acceleration. This development likely marks the end of Toyota`s legal problems related to the unintentional acceleration scandal and the resulting agreement on deferred lawsuits with the federal government. As part of the agreement, Toyota will lose $1.2 billion and agree to pay for an independent federal observer who will review and evaluate the policies, practices and procedures related to its public statements and safety-related reporting obligations. .

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