Lawyers Investigate Toyota Employee 401k Concerns

Torrance, CALegal troubles continue to mount for embattled automaker Toyota as a collection of California lawyers begin to investigate potential claims related to the Japanese company's employee 401k defined retirement plans.

The claims stem from alleged imprudent investments that the company made in the name of its investors and seeks to determine whether the company breached their fiduciary responsibilities to its employees under the Employee Retirement Income Security Act (ERISA) of 1974.

ERISA was created to protect employees who opt for compensation plans that include stock options from corporate mismanagement, fraud or wrongful cancellation.

Toyota is facing a pending shareholder lawsuit in the US District Court for the Central District of California over questionable practices relating to company operations and prospects between August 2009 and February 2010.

Investors argue that officials at Toyota were well aware of the dangerous design flaws in many of its automobiles but failed to report this information to stockholders, reflecting a breach of investor confidence and the investment contract.

The company is currently facing legal complications stemming from malfunctioning acceleration systems in a number of its automobiles.