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Posts Tagged ‘DOJ news’

Takata Pleads Guilty in Airbag Scandal

Justice Department plans to go after executives too.

by on Jan.13, 2017

The Justice Department reached a $1 billion settlement with Takata due to its faulty airbags that resulted in the largest recall in U.S. history.

Takata Corp., the Japanese supplier whose airbags have been linked to at least 11 U.S. deaths, has agreed to plead guilty and pay fines and restitution totaling about $1 billion, the Department of Justice announced Friday afternoon.

Reflecting what U.S. Attorney General Loretta Lynch this week called an effort to hold “flesh-and-blood individuals,” rather than just “faceless corporations” responsible for criminal activity, three Takata executives have been indicted in the scandal. Takata acknowledged it not only produced defective airbags but took steps to conceal that information from both its automaker customers and from the public.

News Now!

“Takata was supposed to be selling products that saved lives,” said Sandra Moser, principal deputy chief of the DOJ’s Fraud Section. Instead, for more than a decade … it put profits ahead of people’s safety.” (more…)

Justice Department Set to Smack Takata With $1B Fine

New fine was impact recall efforts.

by on Dec.29, 2016

Takata appears to be ready to accept a $1 billion settlement on criminal charges from the Department of Justice.

Takata may be moving to close another chapter in its troubled history with defective airbags by agreeing to a $1 billion criminal settlement.

The deal with the Justice Department, according to the Wall Street Journal, would not halt the ongoing recall efforts. The Japanese supplier is expected to plead guilty to a variety of charges as part of the deal.

Global Auto News!

It is part of the largest automotive recall in history, involving about 42 million vehicles and more than 64 million faulty airbags. (more…)

Justice Department Sues VW Over Diesel Emissions Cheating

Feds want recall of 600,000 vehicles; fines could reach into the billions.

by on Jan.04, 2016

VW CEO Herbert Dies' assertion that the installation of defeat devices was the work of rogue engineers wasn't enough to fend off a lawsuit from the U.S. government.

The U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency, has filed a far-reaching civil complaint in federal court in Detroit, Michigan, against Volkswagen AG.

The lawsuit is aimed at forcing Volkswagen AG, and its various subsidiaries including Audi, Porsche and the Volkswagen brand, to recall more than 600,000 vehicles equipped with 2.0- and 3.0-liter diesel engines. The maker has admitted it installed a so-called defeat device in the smaller engines to rig emissions tests. It also violated federal law with the larger turbodiesels.

For the Record!

While the government did not set a specific figure, the Clean Air Act spells out penalties that could top $18 billion for the smaller engine, $3 billion more for the 3.0-liter diesel. Meanwhile, the Justice Department could take further action as part of an ongoing criminal investigation. And hundreds of civil suits filed by owners, dealers and others have been consolidated into a case that will be heard by a federal court in California. (more…)