The Department of Justice announced a record $1.
2 billion settlement with Toyota in a criminal probe of its handling of sudden acceleration complaints. The criminal charge claims Toyota defrauded consumers via misleading safety statements. Toyota Motor Corp’s deal is a record in several ways.
First, it resolves a record criminal probe of an automaker. It is the largest financial penalty of its kind ever imposed on an auto company, said Attorney General Eric Holder. Second, the dollars are big. Toyota will pay a record $1.2 billion to settle the criminal probe. Third, Toyota admitted that it misled consumers about two problems that caused cars to accelerate while drivers were trying to do the reverse. Read Article
Finally, Toyota Agreed to Forego Tax Deduction for $1.2 Billion Settlement With DOJ. Deducting the settlement would have made taxpayers bear 35% of the cost