Toyota Can't Narrow Shareholder Suit Over Defects

Law360, New York (February 22, 2012, 12:30 PM EST) -- A California federal judge on Tuesday rejected Toyota Motor Corp.’s bid to throw out part of a putative class action alleging the carmaker inflated its stock price by misleading the public about a brake defect.

U.S. District Judge Dale S. Fischer denied Toyota’s motion for judgment on the pleadings regarding claims that a Toyota spokesman intentionally provided false statements about the defect in three newspaper reports before a massive January 2010 recall. The statements are among seven that the judge refused to dismiss from the consolidated...
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