News and Events for Attorneys and Executives

States to Forego Most of $650M Legal Settlement With Takata

The Associated Press is reporting that Japanese air bag maker Takata Corp. has reached a $650 million deal to settle consumer protection claims from 44 states and Washington, D.C., but only a fraction of the money will be paid due to Takata’s financial problems and bankruptcy.

Plaintiff states agreed not collect the settlement so that victims of Takata’s faulty air bag inflators can get a bigger piece of the company’s remaining money. But South Carolina, which led the states, will get more than $139,000 to cover costs of the investigation.

Reporter Tom Krisher explains that Takata air bag inflators can explode with too much force and spew shrapnel into drivers and passengers. At least 22 people have died worldwide and more than 180 have been hurt.

Read the AP article.