Eleven former managers of Mitsubishi Motors Corp. agreed to an out-of-court settlement Tuesday in a shareholder suit filed by an investor who demanded they pay damages to the company for a drop in sales caused by the automaker's coverup of defect complaints.

Isao Yotsuya wanted 1.1 billion yen in damages paid to the company, but agreed to 180 million yen, which will be funneled to an in-house section at MMC created to strengthen the carmaker's regulatory compliance and ensure the safety of its products.

Yotsuya, of Toyohashi, Aichi Prefecture, claimed before the Tokyo District Court that the major Tokyo-based car manufacturer suffered a loss in profits due to eroded public trust in it following revelations that it hid complaints from customers that could have prompted recalls.

He sued 11 past top managers, including former MMC President Katsuhiko Kawasoe. They have already paid 20 million yen of the settlement amount.

Mitsubishi Motors will also set up an ethics panel consisting of outside experts, and will hear from employees reports about law violations.

At a news conference after the parties reached the out-of-court settlement, Yotsuya said he is largely satisfied that his suit has led to bolstered steps to improve MMC's internal governance and to prevent a recurrence of such wrongdoing.

The former Transport Ministry inspected the automaker in March and November 1999. Mitsubishi Motors did not report the complaints to authorities in four cases of defects including its Debonair car and large bus.

Instead, MMC officials showed the inspectors less serious claims that did not merit recalls. In the March 1999 inspection, the company concealed 98 percent of 4,496 complaints received, while in the November inspection, some 90 percent of 6,647 claims were hidden.

MMC hid complaints about vehicle defects for more than 30 years until the coverups came to light in summer 2000.