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Takata to Plead Guilty, Set up Victims’ Fund

Three executives face criminal trial but remain out of reach.

by on Feb.27, 2017

At least 16 people are known to have been killed due to faulty Takata airbags.

Embattled Japanese auto supplier Takata Corp. is expected to formally enter a guilty plea in Detroit federal court on Monday, fulfilling the requirements of a deal with the U.S. Justice Department stemming from the cover-up of a deadly airbag defect.

The settlement will see Takata pay $1 billion to settle the case, including a $25 million fine, while also setting up a $125 million compensation fund for victims and family members. So far, at least 16 people are known to have been killed by the company’s malfunctioning airbags, with over 100 injured.

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The government also indicted three Takata executives for allegedly falsifying test reports in an effort to cover up the airbag problem. Dozens of different automotive brands have been impacted by the defect which has led to the recall of more than 42 million vehicles in the U.S. alone.

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