U.S. announces $1.2B Toyota settlement

WATCH: US Attorney General Eric Holder announces the historic fine against Toyota calling the automaker’s actions “shameful”

WASHINGTON – The U.S. has reached a $1.2 billion settlement with Toyota Motor Corp. and filed a criminal charge alleging the Japanese automaker defrauded consumers by issuing misleading statements about safety issues.

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Attorney General Eric Holder said it’s the largest penalty of its kind imposed on an automotive company by the United States.

Under the agreement, Toyota will admit that it misled U.S. consumers by making deceptive statements about two safety issues affecting its Toyota and Lexus vehicles.