Toyota Motor Company on Thursday settled a civil lawsuit with the Department of Justice and Environmental Protection Agency, in which it will pay $180 million—the largest civil penalty ever for violations of the EPA’s emission-reporting requirements under the Clean Air Act.

According to the Department of Justice’s complaint, Toyota “systematically violated these reporting requirements over the course of a decade” by materially delaying the filing of “hundreds of reports about approximately 78 emission-related defects” in millions of its vehicles. “Some reports were filed as late as eight years after they were due and only when Toyota finally disclosed its years of noncompliance to EPA,” the agency said.

Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...