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Takata Pleads Guilty to Wire Fraud in Airbag Inflator Cover-Up
As expected, Takata Corp. has pleaded guilty in a Detroit federal court to a single felony count of wire fraud for misleading U.S. regulators about problems with the company’s explosion-prone airbag inflators.
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As expected, Takata Corp. has pleaded guilty in a Detroit federal court to a single felony count of wire fraud for misleading U.S. regulators about problems with the company’s explosion-prone airbag inflators.
The plea is part of a $1 billion settlement of federal charges against the company worked out last month with the U.S. Dept. of Justice. The deal gives Takata 30 days to pay a $25 million criminal fine and set up a $125 million fund with which to compensate victims of the defective devices.
The remaining $850 million will be distributed among the 19 carmakers that have been replacing some 70 million Takata inflators in the U.S. The devices can deteriorate after prolonged exposure to heat and moisture and then explode when triggered in a crash.
About 100 million of the inflators are being recalled worldwide. All lack a drying agent in their propellant that can prevent deterioration. The devices have been linked to 17 fatalities worldwide, including 11 reported in the U.S.
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