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Jury Finds CU Made False Statements

7 April 2000

Jury Finds CU Made False Statements: Evidence Proved CU Drove Isuzu Trooper Differently Than Other SUVs

    CERRITOS, Calif., April 7 A jury in Federal District Court
in Los Angeles today found that Consumers Union of United States (CU) made
repeated false statements about Isuzu Motors Limited and the 1995-96 Isuzu
Trooper.
    The jury unanimously concluded that Consumers Union falsely branded the
Trooper as "uniquely dangerous" and falsely claimed that it had a design flaw.
A central finding was the jury's conclusion that CU's test drivers drove the
Trooper differently from the other vehicles in its 1996 maneuvers.  "The
evidence clearly showed -- and the jury found 10 to 0 -- that CU drove the
Trooper differently.  We proved that their 'test' was unfair, unscientific and
wrong," said Terry Maloney, VP Corp. Relations, Isuzu Motors America, Inc.
"We have been waiting for three years for this vindication.  This jury ruled
unanimously that CU's core message was false."
    The jury also found that CU acted with "actual malice" -- reckless
disregard for the truth -- when it said the Trooper "should never have been on
the road."  However, the jury was unable to find by "clear and convincing
evidence" -- the legal standard required to overcome First Amendment
protections -- that CU acted with actual malice in publishing its remaining
statements.  The jury also declined to award damages to Isuzu.
    "By bringing this case to trial, we made clear that Isuzu's primary goal
has always been to clear Isuzu's good name.  We believe we achieved that goal
with this jury verdict," said Andrew M. White, Isuzu's lead trial counsel.
    Sales of the affected Isuzu Trooper models suffered in the months
following CU's attack, but rebounded in the 1998 model year, according to
Maloney.  "Our customers stuck by us and this verdict shows they were right,"
he said.