Takata Pleads Guilty to Airbag Fraud, Agrees to $1B Criminal Penalty
Posted on Tuesday, February 7th, 2017
Embattled airbag manufacturer Takata agreed in early 2017 to plead guilty to wire fraud and pay $1 Billion in criminal penalties for selling defective airbags and purposely concealing testing failures from regulatory agencies and the public.
Evidence shows that the company’s airbag tests revealed repeated ammonium nitrate ruptures which resulted in a spray of shrapnel into the cab of the vehicle. After numerous consumer injuries and deaths, the company continued to conceal the data revealed in their tests.
According to ABC News, $125 million dollars of the agreed penalty payment will go to victim’s compensation, while another $25 million will go to paying the general criminal fines. Automakers who installed Takata airbags will be forced to replace them in all vehicles, so the remaining $850 million will go to those companies responsible for cleaning up the mess made by Takata.
If you own a vehicle that has a defective Takata airbag, it is essential that you pay attention to your manufacturer’s recall notices. Of the 60 million Takata airbags installed in vehicles, only 12 million have been replaced so far due to replacement shortages.
For individuals who have suffered an injury due to a defective Takata airbag, know that you do not have to suffer alone. The Takata airbag lawyers of Pohl & Berk, LLP are here to help you if you or a loved one have been injured by the negligent actions of this car company. Contact us at (615) 277-2765 to discuss your claim today.