Man Buys 40 Toyota Shares now Suing for loss

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FireStarter

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In the lawsuits, the shareholders are asking a judge to certify a "class" of plaintiffs that would represent all Toyota shareholders in the U.S. who held company stock on specific dates. If Toyota is found liable, damages could easily run into the hundreds of millions or even billions of dollars.

The shareholder lawsuits are pending in federal court in California, the location of Toyota's North American headquarters.

In one of the lawsuits, Toyota stockholder Harry Stackhouse of Richboro, Pa., contends the company "misled investors by failing to disclose that there was a major design defect in Toyota's acceleration system, which could cause unintended acceleration."

"This drop removed the inflation from Toyota's securities prices, causing real economic loss to investors who had purchased securities," said Stackhouse, who said he bought 40 shares in late 2009 just as the accelerator problems became more widely known.
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How does this tool bag even have remotely a case??

The rest of the article

Toyota shareholders sue over fallen stock price - Business- msnbc.com
 
no way in the world will this be settled for the plaintiffs...

that would set a major precedent that would scare companies into not being publicly traded.
 
mjoe said:
uh no this is done all the time. he has a case.
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Are you fucking serious? You can't sue a company you own for making a mistake otherwise you could sue every company you hold equity in everytime something negatively affected their stock price. This would render the legal system moot.
 
thaRealist said:
Are you fucking serious? You can't sue a company you own for making a mistake otherwise you could sue every company you hold equity in everytime something negatively affected their stock price. This would render the legal system moot.
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They aren't being sued for having accelerator problems, they are being sued for failing to disclose the accelerator problems.

edit: I have no idea whether they have a case or not, I don't know the rules regarding what a company has to disclose to investors or the time frame in which they have to.
 
thaRealist said:
Are you fucking serious? You can't sue a company you own for making a mistake otherwise you could sue every company you hold equity in everytime something negatively affected their stock price. This would render the legal system moot.
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You can't sue for mistakes, but you certainly can sue when those mistakes are swept under the rug.
 
do you guys really think you can't sue the company if they act against your interests as a stock holder? this is probably one of the most pertinent uses of the legal system in keeping corporations in check..
 
you could also sue the company if they decided to stop building factories in 3rd world countries/hiring cheap foreign labor and start building factories in america with expensive domestic workers.. its against your interests, even if its good for the country. and you can sue for that..
 
ya well thankfully our legal system doesnt care how rich or poor you are.. in this instance anyway
his damages won't be much, but he can still sue
 
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