Takata to Plead Guilty, Pay $1B for Airbag Defects
13 January 2017 (4:24PM)
Japan's Takata Corporation has agreed to plead guilty of criminal wrongdoing and pay $1 billion in fines for concealing a defect in its airbags that caused the largest auto safety recall in the United States.
The U.S. attorney's office in Detroit, Michigan, announced the plea deal Friday, the same day it also revealed a grand jury indictment of three former Takata executives.
The settlement requires Takata to pay a $25 million criminal fine, $125 million to individuals who were injured by the faulty airbags, and $850 million to compensate automakers for the massive recall costs.
The company also will be required to make reforms and to be overseen by an independent monitor for three years.
The Justice Department accused Takata of submitting false test reports to automakers to conceal problems with their air bag inflators. The inflators were found to explode under high force, spewing shrapnel into automobiles.
The faulty inflators led to 16 deaths worldwide, 11 of them in the United States. More than 180 other people were injured by the airbags.
WATCH: Prosecutor Announces Takata $1B Settlement for Manipulating Airbag Data
Download Prosecutor Announces Takata $1B Settlement for Manipulating Airbag Data in MP4 format - 4:21PM - 21.5MB - 1:01
U.S. Attorney Barbara L. McQuade announces automotive parts company Takata’s agreement to a $1 billion settlement for manipulating test data to hide airbag defects from customers.
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