This week, a judge in Los Angeles dismissed 26 out of 33 shareholder claims made against Japan-based Toyota. The shareholders filed claims against the car manufacturer for economic loss caused by their vehicles’ sudden acceleration problems.
Toyota’s sudden acceleration defect caused a 20 percent decrease in the company’s shares in January 2010 and February 2010.
Despite the drop in stock value, the judge ruled that the U.S. court did not have jurisdiction over the shareholder claims because they concerned Japanese securities laws.
The judge said that foreign laws “would be completely subverted if foreign claims were allowed to be piggybacked into virtually every American securities fraud case.”
If you are a shareholder with a claim against a company or a company facing claims from shareholders, contact the Orange County officer and director liability lawyers of Daily Aljian LLP at 949-861-2524 to discuss your case with an experienced business attorney.