Japanese manufacturer Takata Corp. announced that it had filed for bankruptcy protection in both the United States and Japan in 2017, following nearly a decade of recalls and lawsuits related to the company's faulty airbag inflators.
The inflators, which are linked to more than 16 deaths and 180 injuries worldwide, can rupture, launching metal shrapnel into drivers and passengers. The dangerously defective inflators have triggered the largest-ever automobile product recall in history. Takata Corp. estimates that by 2019, it will have recalled more than 60 million vehicles in the United States alone and approximately 125 million vehicles globally.
Takata Corp. and its U.S. division, TK Holdings, filed for bankruptcy with liabilities of $10 to $50 billion, making it the biggest bankruptcy of a Japanese manufacturer on record.
Additionally, in February 2017, Takata Corp. reached a significant settlement with the U.S. government over felony charges. The $1 billion settlement includes compensation for automakers, who have so far shouldered the burden of the repair and replacement costs related to the recalls, as well as funds for victims injured by the defective airbag inflators.
Takata Corp.'s viable operations will be acquired by the Chinese-owned and U.S.-based Key Safety Systems for $1.6 billion, while the company's remaining operations will work to produce millions of replacement airbag inflators.
The recalled Takata airbag inflators were included in millions of vehicles from the following automakers:
- Land Rover
However, according to federal regulators, only approximately one third of the recalled vehicles have been repaired.
Were You Injured by a Takata Corp. Airbag?
If you or a loved one suffered injuries due to shrapnel from a defective Takata airbag, you may be eligible for compensation. Contact Holton Law Firm today to schedule a free, no-obligation review of your case.