Settlement reached with Takata over defective airbags

Settlement related to defective Takata airbag system reached

The states and D.C., however, have agreed not to accept the money and instead will have the funds placed into an account so that plaintiffs pursuing private claims can receive larger settlements.

South Carolina, which led the states, will get about $139,000 to cover investigation costs. The faulty airbags have been linked to at least a dozen deaths and more than 100 injuries worldwide.

"We were able to resolve this investigation while ensuring that the needs of injured consumers take priority", South Carolina Attorney General Alan Wilson said in a statement. "That means continuing to work with auto manufacturers in order to replace its faulty air bags, compensating victims harmed by the failure of those defective air bags, and conducting any future business honestly, transparently, and in compliance with state and federal law". However, the company filed for bankruptcy so Beshear says it was agreed that the penalty would be less so the company could pay consumers who were the victims of the airbag defect.

The older the cars get, the higher the risk: Over time, high humidity can cause the propellant that inflates the safety devices to become unstable and explode with too much force during a crash.

In February 2017, Takata pleaded in a USA federal court to a felony charge as part of a $1 billion settlement that included compensation funds for automakers and victims of its faulty air bag inflators in connection with the largest automotive recall in history. That ruptures the metal inflator and throws shrapnel at drivers and passengers.

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Takata agreed not to advertise the safety of its air bag systems without scientific and engineering support and not to manipulate testing data.

Most major carmakers have been affected by the fault, with about 100 million Takata airbags recalled globally since the issue first emerged in 2007.

TK Holdings, Inc.'s parent company also pleaded guilty to manipulating testing data and submitting false and misleading reports to auto manufacturers.

Earlier this month, the company gained USA court approval for its bankruptcy restructuring plan.

Under the settlement, the airbag maker must cooperate with auto manufacturers to ensure that replacement airbag inflators are made available as quickly as possible.


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