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A group of automakers, including General Motors and Fiat Chrysler, failed to dismiss economic damages claims in the multidistrict litigation concerning defective Takata Corp. air bags. U.S. District Judge Federico A. Moreno ruled that consumer complaints filed directly in the MDL were permissible, including a nationwide Racketeer Influenced and Corrupt Organizations Act class action claim. The ruling ensures the automakers will not face duplicative claims by designating the direct file complaints as the legally operative pleadings and dismissing related transferor complaints without prejudice. The lawsuits allege that the automakers knew about the air bag defects but concealed the risks from the public. Several other companies, including Ford, Honda, and Toyota, have already reached settlements in the case.

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Originally published by Nathan Hale | May 6, 2019 | Law360