Honda Seeks Settlement in Kickback Suit

Honda Motor Co. agreed to proceed with a $316-million settlement of a class-action lawsuit by car dealers who said the Japanese auto maker shipped fewer cars to dealers who refused to pay kickbacks to Honda executives. Honda informed U.S. District Judge Frederick Motz in Baltimore that enough dealers have opted not to be covered by the settlement to allow the auto maker to call it off, but the company’s Los Angeles-based U.S. unit decided to seek Motz’s final approval for the settlement anyway. Honda’s decision moves the settlement a step closer to reality. It would free the company from the potential for billions of dollars in liability. The dealers had claimed as much as $3 billion in actual damages, arguing they were denied hot-selling Accords and Acuras as part of the kickback arrangement. Motz will decide Monday whether to approve the settlement. Honda’s American depositary receipts rose 31 cents to close at $62.81 on the NYSE.