This is a securities fraud class action brought under the federal securities laws of the United States and the Financial Instruments and Exchange Act of Japan against Toyota Motor Corporation ("Toyota" or the "Company") and certain of its officers, directors and subsidiaries, on behalf of Toyota investors who purchased or otherwise acquired Toyota common stock or Toyota American Depositary Shares between May 10, 2005 and February 2, 2010, inclusive (the "Class Period").
On August 2, 2010, the Honorable Dale S. Fischer appointed the Maryland State Retirement and Pension System as Lead Plaintiff and BLB&G as Lead Counsel for the Class, and on October 4, 2010, Plaintiffs filed the Consolidated Class Action Complaint. The Consolidated Complaint includes additional named plaintiffs the Fresno County Employees' Retirement Association and Robert M. Moss.
As alleged in the Complaint, the Defendants repeatedly assured the public, the government, and Toyota investors throughout the Class Period that Toyota's vehicles remained of high quality and were safe, all the while knowing that serious, undisclosed problems with unintended acceleration affected nearly all of Toyota's top-selling models. At the same time that Toyota was issuing public statements of Toyota's strong commitment to safety and quality, Defendants knew that Toyota vehicles were prone to unintended acceleration problems that ultimately resulted in serious injuries and fatalities among Toyota customers, massive recalls, and a staggering decline in the value of Toyota shares.
For years, Toyota took various steps to avoid recalling defective vehicles and publicly disclosing the unintended acceleration problems in its vehicles. Among other things, Toyota hired former high-level federal regulators to act as Toyota lobbyists and persuade their former colleagues at the National Highway Transportation Safety Administration ("NHTSA") to limit or resolve investigations into safety defects without requiring Toyota to issue costly recalls or alert the public to the dangers. Moreover, Toyota steadfastly denied that any defect in Toyota vehicles was the cause of unintended acceleration and withheld or delayed information from NHTSA that would have alerted the agency to the problems.
As a result of Defendants' misrepresentations and omissions concerning the quality and safety of Toyota vehicles and the Company's compliance with the law, Toyota's securities traded at artificially inflated prices during the Class Period. When the truth about Toyota's unintended acceleration problems and vehicle defects began to emerge in late 2009, the price of Toyota's securities plunged, wiping out billions in shareholder value. Revelations about Toyota's deceptive tactics with regulators and false public denials further eroded Toyota's vaunted reputation for safety and quality, prompting Congressional hearings, a grand jury investigation, a record $16.4 million fine, and additional investigations by the SEC, NHTSA and foreign regulators.
On January 20, 2011, Defendants filed a Motion to Dismiss the Consolidated Class Action Complaint, which Plaintiffs opposed. On June 6, 2011, Judge Fischer heard oral argument on Defendants' motion to dismiss in Los Angeles, California. At the hearing, Judge Fischer requested that Plaintiffs provide the Court with a Supplemental Appendix to the Complaint, which Plaintiffs filed with the Court on June 20, 2011.
On July 7, 2011, the Court issued its Order sustaining certain of Plaintiffs' claims under the Federal Securities Laws and dismissing Plaintiffs' claims under the Securities Laws of Japan. The Court also provided leave to amend as to certain non-Japanese law claims by July 28, 2011. On September 9, 2011, Defendants filed their Answer to the Consolidated Class Action Complaint. Accordingly, the case is now in the discovery stage. Plaintiffs have served discovery requests on Defendants and several non-parties.
On October 17, 2011, the parties appeared for a status conference before Judge Fischer who adopted the parties' proposed schedule for class certification with a hearing scheduled for June 11, 2012, and ordered the parties to further meet and confer regarding certain case management matters, including a pre-trial schedule and appointment of a discovery master(s). On November 16, 2011, the Court approved the parties' selection of the Honorable Layn R. Phillips (Fmr.) as Special Master and stipulated procedures for the resolution of discovery disputes by the Special Master.
On December 6, 2011, Plaintiff filed a Motion to Compel the Production of Documents from Defendants, which Defendants have opposed.
On December 9, 2011, Defendants filed a Motion For Partial Judgment On The Pleadings. Plaintiff's opposition is due on January 23, 2012. The Court has set a hearing on the motion for February 27, 2012.
