Toyota shareholders are outraged over the fallen stock price of this automaker. These shareholders are heading to court with lawsuits claiming that Toyota's executives purposely misled investors and the public about seriousness of the accelerator problems in millions of its vehicles.
These shareholder cases are only part of many potentially costly lawsuits against Toyota over the acceleration issue, including those filed by crash victims and their families. Many people also argue that their vehicles are worth a lot less because of the recalls to the vehicles.
The lawsuits argue that the top company executives have known for nearly a decade that faulty electronic throttle controls caused vehicles to sometimes careen wildly out of control but covered it up to protect the company's reputation for safety, and also its stock price.
Even though the shareholders and lawsuits seem to have good arguments, Ford won a recent case over investors.
'In one of the best-known recent auto product liability cases, Ford prevailed over investors who claimed the company made misleading statements about the safety of the popular Explorer sport utility vehicle prior to a massive tire recall prompted by a series of rollover crashes. A federal judge ruled in December 2001 that although some of the company statements amounted to "corporate puffery," Ford could not accurately foresee the impact of the recall when the statements were made."
What do you think the ruling will be when the lawsuits against Toyota are taken to court? It looks like Toyota is in deep doodoo. Even if they do win their case, I'm sure Toyota's reputation will go down the drain.
Guessing cost-sharing wrong matters a lot
4 hours ago
1 comment:
I have a feeling that they (Toyota) will most likely win their cases because they are such a huge company and because of the nature of the opposition's arguments. buying stock always has risk. the fact that some of these people didnt actually realize that the risk could effect them astounds me. yes, it sucks to get screwed (especially economically) but it's one thing to be blatantly lied to, and another let people persuade you to buy something by hearing what you want to hear.
HOWEVER, these cases and all this negative attention in general surely wont to anything good for Toyota whether or not they manage to be proven innocent in court.
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