PERSONAL INJURY LAW: Investors Charge Toyota with Class-action Lawsuit

February 8, 2010

Los Angeles - Investors have charged car maker giant Toyota with class-action lawsuit, alleging that the company “has misled them about the safety of Prius” which is the top-selling hybrid car in the US.

In a court-complaint filed Monday, US shareholders said that Toyota “has failed to disclose the major design defect found in Toyota’s braking system which may cause unintended acceleration.”

The lawsuit, which was filed in US District Court in Los Angeles, also accused the company of making false statements that resulted to the “artificial inflation of prices in traded securities.”

“Toyota has made misleading statements about its business, operation, financial results, and outlook”, according to the lawsuit.

Following its massive recall that now covers about 8 million vehicles worldwide, Toyota’s US sales declined by 16 percent in January compared with the same month last year.

The US National Highway Traffic Safety Administration said that about a hundred customers complained about their Prius which has a defective brake system that could fail in bumpy roads.

Meanwhile, safety experts said if drivers encounter a brake problem with their Prius, they should hit the pedal harder and make sure to allot longer braking distance to avoid crashing to another car.