Toyota Motor Corp settled a lengthy Justice Department civil probe into its delayed filing of emissions-related defect reports for $180 million, the government said on Thursday.
Reuters first reported the expected settlement, which resolves the violations of the Clean Air Act.
Toyota first disclosed in 2016 it was under investigation for the delayed reports to the Environmental Protection Agency (EPA). The Justice Department had not previously confirmed the investigation until Thursday’s announcement by the U.S. Attorney’s Office in Manhattan that the government had filed a civil lawsuit against the Japanese automaker. It simultaneously announced the settlement, which includes a consent decree that requires semi-annual compliance reports.
Toyota will record $180 million in after-tax charges against earnings in the fiscal year ending March 31, 2021, for costs relating to the agreement.
The government said the settlement resolved Toyota’s “systematic, longstanding violations of Clean Air Act emission-related defect reporting requirements, which require manufacturers to report potential defects and recalls affecting vehicle components designed to control emissions.” (Reuters)
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