Toyota Shareholders Sue Over Plunging Stocks

Compensation sought for screw up
By Nick McMaster,  Newser Staff
Posted Mar 22, 2010 2:34 AM CDT
A Toyota Prius.   (AP Photo/California Highway Patrol)

(Newser) – Toyota shareholders are suing the company's board for failing to disclose critical safety issues that have led to a massive recall of 8.5 million cars. Since Toyota 'fessed up to serious quality control issues, its market capitalization has fallen by 12%, a loss of $15 billion dollars. In three separate class-action lawsuits, shareholders claim that Toyota's unwillingness to openly discuss its product defects amounted to securities violations.

Experts say that it will be difficult to prove that Toyota conspired to mislead shareholders. The shareholder lawsuits are not Toyota's only court battle. A law firm has filed suit in five states demanding that Toyota owners get full refunds, the Detroit News reports.

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