Toyota Industries Corporation  (TICO) has confirmed that together with its US-based subsidiaries, Toyota Material Handling North America and Toyota Material Handling, it has settled a class-action lawsuit it was facing in the US it terms as "arising from a certification issue for forklift engines", paying USD299.5 million.

The lawsuit against TICO was filed in the Northern District Court of California on behalf of Broadmoor Lumber & Plywood, Italian food distributor Ferraro Foods and nursery Marders against Toyota Industries, Toyota Material Handling NA, Toyota Material Handling Inc and Toyota Motor Corporation in September 2024.

It followed the March 2023 announcement from TICO it was suspending a domestic shipment of forklifts in Japan, “due to potential violation of regulations related to certification of engines for forklifts”.

The three plaintiffs say they purchased forklifts they believed were low emissions or produced less emissions than they were advised and would not have purchased them if they had known their true emissions output.

TICO admitted its emission cheating on some models of forklift had spanned more than a decade in Japan.

“In the lawsuit, the plaintiffs sought damages and other compensation from the TICO Group,” TICO states of the settlement.

“On October 31, 2025, TICO Board of Directors approved entering into a settlement agreement with the plaintiffs, which provides for a settlement payment and complimentary maintenance services.

“In addition, investigations by the US federal and California state authorities concerning engines for US forklifts, as well as discussions with those authorities, are still ongoing. 

“The Company will continue to address these matters diligently and will promptly disclose any developments requiring public announcement.”

Earlier this month TICO revised down its financial year forecast reflecting the payment.