Maryland Pension Fund to Lead Toyota Shareholder Lawsuit Over Auto Recalls

[Omaha Steve]

http://www.bloomberg.com/news/2010-08-03/maryland-pension-fund-to-lead-toyota-shareholder-lawsuit-over-auto-recalls.html

By Edvard Pettersson - Aug 2, 2010 7:02 PM CDT

A Maryland public pension fund was named lead plaintiff in a consolidated shareholder lawsuit against Toyota Motor Corp. accusing the carmaker of failing to disclose defects related to sudden-acceleration of its vehicles.

U.S. District Judge Dale Fischer, at a hearing today in Los Angeles, appointed the Maryland State Retirement and Pension System as lead plaintiff and the fund’s law firm, Bernstein Litowitz Berger & Grossmann LLP, as lead counsel.

Fischer had said in a July 16 ruling that a recent U.S. Supreme Court decision may exclude securities-law claims by investors in Toyota’s common stock rather than in the carmaker’s American depositary receipts. Among the funds vying for lead plaintiff status, the Maryland fund alleged the largest losses, $257,580, on its investments in Toyota’s American depositary receipts.

The July 16 ruling doesn’t necessarily preclude investors from trying to seek damages based on losses from Toyota’s common stock, Gerald Silk, a lawyer for the Maryland fund, said after the hearing. Whether these claims will be allowed to proceed may be decided with a motion to seek class certification or a motion to dismiss the complaint, Silk said.

Patrick Robbins, a lawyer for Toyota, declined to comment after today’s hearing.

2.3 Million Vehicles

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