Toyota shareholders sue the company over false claims

March 23rd, 2010 - 2:17 am ICT by Aishwarya Bhatt  

toyota_prius_photo New York, Mar 22 (THAINDIAN NEWS) After numerous recalls by Toyota, its now time for the Toyota shareholders to take stock and get even. They have sued the company over false promises and claims by the company executives. The Toyota shareholders claim that the company executives didn’t divulge the truth, and thus misled the investors and the customers over the recall issues.

They are particularly miffed over the part that the company executives didn’t reveal the exact nature and the depth of the accelerator problems, which led to numerous recalls. The shareholders allege that the company executives tried to pacify the customers and the investors that the acceleration problem was a simple issue, and would be sorted out easily. But in reality it was a huge issue, that led to millions of vehicle recalls too. The shareholders have also sued the company over the decrease in the company’s stock price too.

The acceleration issue is proving to be the bane of Toyota’s problems, as there are numerous lawsuits against the company by crash victims and their families. The investors also say that Toyota has known about the electrical problems for a long time, almost a decade, but it didn’t take any remedial measures to sort them out.

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