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Bad Week for Those Suing Takata, GM

Courts side with airbag maker; GM derails $1b settlement over faulty ignition switches.

by on Aug.18, 2017

As many as 18 people are known to have died due to faulty Takata airbag inflators.

Motorists looking for settlements related to two of the biggest safety scandals in recent years were in for some unpleasant surprises this week.

General Motors derailed a deal that could have forced it to provide $1 billion in stock to thousands of plaintiffs suing over the company’s faulty ignition switches which were linked to more than 100 deaths and hundreds of injuries.

The Last Word!

Separately, a Delaware bankruptcy court halted a collection of lawsuits filed against the Japanese auto partsmaker seeking damages related to faulty airbags now linked to as many as 18 deaths and about 180 injuries worldwide – though the suits may continue after a 90-day ordered by Judge Brendan Shannon.

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Takata Close to Filing Bankruptcy

Talks with Key for financial help may not close in time.

by on Jun.15, 2017

The troubled supplier is close to filing bankruptcy, sources claim. The filing could come as early as next week.

The long saga that has become the deal between Takata Corp. and Key Safety Systems Inc. may be winding to a close as sources report the Japanese company is close to filing bankruptcy, perhaps as early as next week.

Reuters reports that Takata has been hammering out a deal with Key for financial backing, and trying to deal with the billions of dollars in liabilities it owes due to its defective air bag inflators.

Safety News!

Another sticking point is the $850 million owed by the Japanese airbag system maker to major global automakers, which is part of a settlement reached earlier this year. The company has until 2018 to pay the $850 million. Neither Takata nor Key commented on the story, Reuters reported. (more…)