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Toyota: I'll see you in court
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July 9, 1999: 6:25 p.m. ET
Car maker rejects U.S. government settlement, paving way for lawsuit
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NEW YORK (CNNfn) - Toyota Friday turned down a multimillion dollar settlement offer from the Justice Department, paving the way for the U.S. government to sue the car maker over alleged environmental violations.
With a deadline of Friday, Toyota refused the government's offer to drop accusations that more than 2 million Toyota and Lexus models spewed ozone-depleting hydrocarbons from their exhaust systems.
According to Friday's USA Today, settling would have cost Toyota more than $100 million. Neither side would confirm that figure.
"We're not going to settle for something that isn't right," said Toyota spokesman Joe Tethrow. "We think we're right and the government's wrong."
The Justice Department charges that the pollution detection system on the cars doesn't work as required by law. As a consequence, dangerous emissions are being released without drivers' knowledge.
But Toyota denies this.
"We have the tests to prove it," said Tethrow. "None of the vehicles poses an emissions threat."
A federal official, who refused to be identified, said the suit against Toyota will likely be filed in Washington, D.C. on Monday.
Toyota's American depositary receipts (TOYOY) gained 1/ 2 to 64-3/4 Friday. 
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Toyota
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