After one of the biggest recalls in U.S. automotive history, the Takata Corporation pleaded guilty to fraud, and agreed to pay $1B in penalties.
Takata not only pleaded guilty, but admitted they hid evidence that their air bag inflators could explode with too much force. The defective air bags have been blamed for 11 deaths in the U.S., and more than 180 injuries worldwide.
The penalties include $850 million in restitution to automakers, $125 million for victims, and $25 million in criminal fines. While the penalty is hefty, it’s nowhere near the fines imposed on Volkswagen – who will pay up to $21 billion over their emissions scandal.
Despite some closure regarding the Takata’s Corp., plaintiffs’ attorneys recently added another wrinkle after they charged that five automakers knew the air bags were defective, and continued to use them to save money. That part of the story is to be continued …
