Toyota Shareholders Suing Alleging That Toyota Misled Them

Toyota shareholders are clearly upset with how the company handled recalls and disclosing problems to the shareholders and the public. They are upset enough that they are filing suit. According to the Detroit News:

"At least three class-action lawsuits alleging securities violations have been filed against the Japanese automaker in recent weeks. One suit, filed by the law firm Murray, Frank & Sailer in U.S. District Court in California-- is on behalf of shareholders who purchased stock between Dec. 22, 2009 and Feb. 2, 2010.

The suit charges that Toyota issued 'materially false and misleading statements' regarding Toyota's operations, business, and outlook.

Toyota 'failed to disclose ongoing safety issues and quality control problems with Toyota's automobiles, especially the fact that accelerator pedals installed in many of Toyota's cars were defective and could become stuck in the depressed position, leading to unintended acceleration,' says the suit.

Toyota won't comment on any of the suits because they are pending. Toyota's market capitalization has fallen by 12 percent-- or $15 billion-- since the company's stock hit $90.42 on Jan. 21-- the day Toyota announced it was recalling 2.3 million vehicles over sticky pedal concerns. Toyota's stock closed Friday at $79.56."

The full story is available here.