Parties in Toyota Securities Suit Told to Resolve Discovery Fight | National Law Journal

A federal judge in Los Angeles has declined a request by plaintiffs lawyers in a shareholder class action to force attorneys for Toyota Motor Corp. to turn over documents that were provided to Congress, which has been investigating vehicle recalls associated with sudden unintended acceleration defects.

Instead, U.S. District Judge Dale Fischer of the Central District of California on Monday ordered the parties to reach a discovery agreement on their own within a week.

The suit, filed on Feb. 8, is the first shareholder class action to allege that Toyota’s executives and directors made false and misleading statements to shareholders regarding the defects. The recall caused Toyota’s stock price to drop from $90.42 on Jan. 21 to $71.78 on Feb. 4.

In court documents, lawyers for the plaintiff, Harry Stackhouse, had asked Fischer to lift a stay on discovery and instead order that documents relevant to the case be preserved or turned over. Under securities law, discovery is stayed in a shareholder case if a judge has yet to rule on pleading motions, such as a motion to dismiss.

To support their argument, the lawyers pointed to “serious allegations” that Toyota failed to disclose the defects. They specifically mentioned a $16.4 million fine that the National Highway Traffic Safety Administration imposed after finding that Toyota waited four months to report the defects.

via Law.com – Parties in Toyota Securities Suit Told to Resolve Discovery Fight.

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State Suits Against Toyota Could Pave the Way for Federal Multidistrict Litigation | National Law Journal

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Toyota Motor Corp.‘s legal problems aren’t limited to the federal multidistrict litigation over unintended acceleration of its vehicles. Scores of lawsuits are working their way through state courts across the nation, and some of those cases could pave the road for the MDL.

The first hearing in the MDL won’t take place until later this month, but some lawyers with cases pending in various state courts already have begun deposing Toyota executives.

Many of the state court suits were filed more than a year ago and, having progressed farther in the court system, might provide some guidance on discovery issues and depositions of Toyota executives that could prove helpful in the MDL or in other cases.

“I would anticipate there are some state court cases that will possibly go to trial well in advance of the MDL,” said Donald Slavik of Habush Habush & Rottier in Milwaukee, a plaintiffs attorney with personal injury suits in state courts across the country. “In fact, if anything, they’re probably leading along the MDL in that a lot of the stuff that comes out of the state court cases will probably be used by the MDL.”

The sharing of resources could prove limited, however. “Sometimes, this MDL stuff can drag out and take a long time,” said R. Graham Esdale Jr., a shareholder at Montgomery, Ala.-based Beasley, Allen, Crow, Methvin, Portis & Miles. “If you’ve got people injured and hurt, it's not fair to have them sit for years and years because this has turned into a big, complex litigation.”

via Law.com – State Suits Against Toyota Could Pave the Way for Federal Multidistrict Litigation.

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Lawsuits against Toyota are consolidated | latimes.com

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More than 150 lawsuits against Toyota Motor Corp. over alleged sudden-acceleration problems and related injuries have been consolidated before a single federal judge in Santa Ana, about 30 miles from the automaker’s U.S. headquarters in Torrance.

That means that while federal investigations into the causes of the unintended speeding continue in Washington, Southern California now will be the focal point for assessing any blame.

In a ruling handed down Friday, the U.S. Judicial Panel on Multidistrict Litigation allowed more than 100 suits seeking class-action status, as well as at least 50 personal injury cases, to be adjudicated in a single federal courtroom. The seven-member panel assigned the case to Judge James V. Selna, who was appointed to the federal bench in 2003 by President George W. Bush.

The ruling applies only to federal cases and not lawsuits filed in state courts.

Toyota has been subject to an onslaught of legal filings since it announced its largest-ever recall last September for floor mats that can entrap accelerator pedals and cause unintended acceleration. Since then, Toyota has also recalled vehicles for gas pedals that can stick, as well as some Prius models for brake problems. In total, the Japanese automaker has issued nearly 10 million recalls for cars and trucks since last fall.

via Lawsuits against Toyota are consolidated – latimes.com.

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Toyota Documents Show It Knew of Pedal Flaws in 2006 | BusinessWeek

Toyota Motor Corp. knew about flaws that could cause unintended acceleration more than 3 1/2 years before it recalled cars and trucks to fix the defects, according to company timelines.

Toyota, the world’s largest automaker, learned that floor mats could entrap accelerator pedals as early as Feb. 7, 2006, and that pedals could stick five months later, according to documents dated March 24 that were submitted the National Highway Traffic Safety Administration and obtained today.

The timelines show what Toyota has said was a slow response that led to the recall of more than 8 million vehicles worldwide starting last year to repair the two types of acceleration- related defects.

The first report was from a model year 2005 Prius hybrid “regarding floor mat interference with an accelerator pedal,” according to the documents, which were sent by the carmaker to the safety agency.

Toyota appointed a chief quality officer for North America and gave the regional officials more authority in making safety- related decisions following U.S. inquiries into the recalls.

“We are not going to elaborate on any documents provided to NHTSA,” Toyota said today in an e-mail statement. “We’ve already acknowledged on several occasions that the company did a poor job of communicating during the period preceding our recent recalls.”

Toyota, based in Toyota City, Japan, began recalls for the two pedal-related defects after an Aug. 28 Lexus sedan crash killed off-duty California Highway Patrol officer Mark Saylor and three family members when a floor mat jammed down the accelerator pedal.

via Toyota Documents Show It Knew of Pedal Flaws in 2006 (Update2) – BusinessWeek.

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Toyota exec warned on defect: We need to come clean | Reuters

A senior Toyota Motor Corp (7203.T) executive in the United States warned in a January email that the automaker needed to “come clean” on a safety defect that caused accelerator pedals to become stuck open.

The January 16 email from Irv Miller, then Toyota’s top U.S. spokesman, was sent five days before the automaker launched a recall for about 2.3 million vehicle to fix the sticky accelerator pedals.

“We are not protecting our customers by keeping this quiet,” Miller said in his email. “The time to hide on this one is over. We need to come clean.”

A copy of the document was obtained by Reuters on Thursday. Its release comes as Toyota considers whether to appeal a proposed $16.4 million safety fine by U.S. safety regulators.

The email exchange between Miller and a Japanese colleague arguing against responding to media reports of mechanical failures highlights the gap in the level of urgency at the U.S. arm and headquarters — a problem that Toyota later acknowledged contributed to delays in its responses.

The email from Miller, who was about to retire a month later, was one of thousands of pages of internal correspondence collected by U.S. government officials investigating Toyota.

The U.S. Department of Transportation proposed the fine against Toyota — the largest allowed by law — and said that the automaker had knowingly delayed the recall for defective accelerator pedals.

Toyota has two weeks to decide whether to appeal that penalty for the first official finding that the world’s largest automaker violated U.S. safety regulations.

Toyota spokesman Mike Michels said on Thursday that the automaker had not determined its response yet.

The automaker said it would not comment on Miller’s email.

“We have publicly acknowledged on several occasions that the company did a poor job of communicating during the period preceding our recent recalls,” Toyota said in a statement.

via Toyota exec warned on defect: We need to come clean | Reuters.

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Law firms form consortium in Toyota recall litigation | Business Insurance

About 25 law firms seeking class action status for lawsuits filed against Toyota Motor Corp. in more than 20 states have formed a consortium, an attorney coordinating the group said Thursday.

Approximately 20 other lawsuits seeking class action status on behalf of consumers also have been filed against the automaker because of accelerator problems that have led to the recall of more than 8 million automobiles.

Those 40 suits do not include individual personal injury claims that consumers have filed against Toyota.

Tim Howard, coordinator of the Attorneys Toyota Action Consortium, said a court hearing on whether all the class action cases will be consolidated is expected March 25 before a multidistrict panel in U.S. District Court in San Diego.

Mr. Howard is a professor of law and policy at Northeastern University and an attorney at Howard Associates P.A. in Tallahassee, Fla.

The lawsuits seeking class action status share common allegations that consumers lost value in and the use of their cars because of defective parts that sparked the recall.

Total damages sought in the consolidated class actions could exceed $2 billion, based on a calculation that millions of cars lost hundreds of dollars in value and their owners lost the use of their cars while they were unsafe to drive or were being repaired, Mr. Howard said.

via Law firms form consortium in Toyota recall litigation | Business Insurance.

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