On Nov. 26, 2013, Toyo Tire & Rubber Co. Ltd. entered into a plea agreement with the United States Department of Justice (DOJ) agreeing to pay a fine of $120 million based on charges that it violated U.S. anti-trust laws in connection with sales of automotive anti-vibration rubber products and constant-velocity-joint boot products.
"The Toyo Tire group companies have been fully cooperating with the DOJ's investigation, and made this decision after careful consideration of the applicable laws, and the results of the findings from the investigation," says the company.
The company declared an 11.7 billion yen extraordinary loss to cover potential future losses resulting from the investigation for the recently-ended third quarter. "Therefore, the financial forecast for the fiscal year ending December 2013... remains unchanged," says Toyo.
To express their remorse and to demonstrate their commitment to compliance with the laws, the directors and corporate officers of Toyo Tire will voluntarily forfeit a portion of their compensation as follows:
* representative directors, 30% for three months.
* other members of the board, 20% for three months.
* outside director and corporate officers, 10% for one to three months.
Additionally, the corporate auditors will voluntarily forfeit a portion of their compensations.
"The Toyo Tire group companies are committed to ensuring compliance with all laws, and to rebuilding the public's trust. To prevent a recurrence, the group companies have undertaken to strengthen its educational and compliance programs, as well as the internal audit functions."
