In a Florida federal court, manufacturer Takata and automakers like Honda argued for the dismissal of multidistrict litigation regarding defective, exploding air bags. The companies challenged the plaintiffs’ racketeering claims, arguing they are not suitable for a product liability case and lack specific proof of harm. Plaintiffs’ counsel, Peter Prieto, countered that the companies engaged in a long-term conspiracy to conceal the defect, which involves the use of volatile ammonium nitrate in the air bag inflators. While automakers pointed to massive recall efforts as a remedy, the plaintiffs maintained they overpaid for their vehicles and would not have bought them had the defect been known. U.S. District Court Judge Federico Moreno heard arguments from both sides regarding the motion to toss the economic-loss claims from consumers.
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Originally published by Nathan Hale | Oct 23, 2015 | Law360
