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Toyota has settled with the U.S. Department of Justice for $180 million over a civil lawsuit for violations of the Clean Air Act.
The DoJ said that the lawsuit against Toyota was for “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.”
Toyota agreed to a $180 million fine, which is the largest civil penalty for violation of EPA’s emission-reporting requirements. The fine will be recorded as after-tax charges against earnings in the fiscal year ending this March.
The Japanese carmaker had first disclosed in 2016 that it was under investigation for the delayed reports to the EPA. The settlement came almost immediately after the announcement by the U.S. Attorney Office in Manhattan that the government had filed a civil lawsuit against Toyota.