Japanese auto parts manufacturer Takata Corp. pled guilty to one count of wire fraud in Michigan federal court as part of a settlement with the U.S. Department of Justice (DOJ) to pay nearly $1 billion for falsifying air bag inflator test data over 15 years. This deal requires Takata to establish a restitution fund for injured drivers and an $850 million fund for the victim original equipment manufacturers (OEMs). Lawyers representing drivers in separate Florida multidistrict litigation, including Kevin Dean of Motley Rice LLC and Podhurst Orseck PA, objected to the plea, arguing that automakers like Honda and Ford also knew the air bag inflators containing volatile ammonium nitrate were defective. Although the judge overruled the objection, he explicitly stated that the plea agreement would not shield the automakers from civil liability.
Read the full article: Law360
Originally published by Emily Field | Feb 27, 2017 | Laaw360
