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Report: Takata to Plead Guilty in $1 Billion Airbag Settlement
Takata Corp. is expected as early as today to plead guilty to criminal wire fraud and pay $1 billion in a deal with the U.S. Dept. of Justice over the company’s handling of defective airbag inflators linked to 16 fatalities worldwide, sources tell Reuters.
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Takata Corp. is expected as early as today to plead guilty to criminal wire fraud and pay $1 billion in a deal with the U.S. Dept. of Justice over the company’s handling of defective airbag inflators linked to 16 fatalities worldwide, sources tell Reuters.
The news service says the settlement will consist of a $25 million criminal fine, $125 million in payments to certain victims of exploding Takata inflators and $850 million allocated to 19 carmakers that so far have recalled about 42 million vehicles containing 70 million of the devices in the U.S.
Takata is expected to be given a year to come up with the $1 billion either independently or through a financial backer, according to Reuters. The company has been seeking a buyer for more than six months, and financial experts say the settlement is likely to facilitate a sale.
The agreement will be filed in the U.S. District Court in Detroit. Reuters says the Justice Dept. may specify that settlement payments be managed by compensation expert Ken Feinberg. He handled payments to victims of the 911 terrorist attacks and most recently directed the General Motors Co. compensation program for 399 victims of the company’s defective ignition switches.
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