Overwhelmed by airbag recalls and lawsuits, Japanese based company, Takata Corporation filed for bankruptcy protection in both Japan and the United States on Monday, June 26, 2017. The airbags manufactured by Takata Corp. used inflators powered by ammonium nitrate that caused the airbag to explode upon deployment, sending pieces of metal shrapnel into drivers. These faulty airbags were responsible for the deaths of 16 people. In addition to the fatalities, Takata is responsible for at least 180 injuries and is having to deal with the largest automotive recall in the history of the United States. So far 100 million airbags equipped with the faulty inflators have been recalled worldwide, including 69 million in the U.S., affecting 42 million vehicles.
Takata Corp. cited filing for bankruptcy protection was the only way it could stop the drain on its assets. Most of Takata’s assets will be bought by Chinese company, Key Safety Systems, for approximately $1.6 billion. At least $1 billion from this sale will be used to settle Takata’s current criminal charges in the United Sates for concealing the known dangers with the airbag inflators. Of that $1 billion payout, $850 million will go to car manufacturers to help cover their costs dealing with the recalls. To date, Takata has already paid $125 million into a fund for victims of their defective airbags and has paid a $25 million fine to the U.S. Justice Department.
If you or someone you know has been injured by a defective airbag, it is important to find a skilled law firm with experience handling personal injury cases. The law firm of Abraham, Watkins, Nichols, Agosto, Aziz & Stogner is the oldest personal injury firm in Texas, and our attorneys are standing by to assist with your claim. Call us today at 713-396-3964 or 800-594-4884 for your free consultation.