Thursday, August 3, 2017
Japanese Air Bag Maker Declares Bankruptcy After Largest Recall In U.S. History
Product liability laws are complex and distinct. Product liability cases require attorneys who have the ability and expertise to analyze all legal and technical issues of a particular products liability matter. Powell Law has litigated on behalf of those injured by the use of a product, device, or other merchandise for 110 years. If you have used any product and believe, as a result, you suffer some injury, illness, or condition, call Powell Law. Your first consultation is free.
In June, Takata, the large Japanese air bag manufacturer, filed a Chapter 11 bankruptcy case in the United States, listing debts of more than $10 billion. Around the world, the company has faced numerous recalls of its air bag inflators, which are alleged to explode. Takata’s air bag inflators have been linked to at least 11 deaths in the United States alone. “That bankruptcy, while expected by virtually everyone in automotive litigation, is possibly the largest issue facing the industry in years,” said Thomas Regan of LeClair Ryan.
The company is attempting to sell its global operations for $1.6 billion dollars. The company is hoping the sale will cover the sum of $850 million that Takata owes the U.S. government related to a $1 billion plea agreement. Takata also hopes to set up funds for the benefit of creditors with general unsecured claims, which would include personal injury and wrongful death claims for its defective air bags.
As a result of Takata’s problematic air bags, the National Highway Traffic Safety Administration imposed the highest fine in its history. Takata was ordered by the NHTSA to pay $200 million because, although it had knowledge of the defect, it failed to alert the agency of the defect’s existence, and then withheld relevant information from the NHTSA’s investigation.
Deals involving four automakers, BMW, Mazda, Subaru, and Toyota, are intended to hasten the removal of the air bag inflators from approximately 16 million affected vehicles, as well as compensate class members for economic losses such as paying rental car expenses. Many other carmakers will likely face liability for the remaining claims, especially since it is expected that Takata will not have enough funds to pay them in their entirety.
As the law of product liability is complex and distinct, products liability cases require attorneys that have the ability and expertise to analyze all of the legal and technical issues of a particular products liability matter. Powell Law has litigated on behalf of those injured by the use of a product, device, or other merchandise for 111 years. If you have used any product and believe, as a result, you suffer from injury, illness, or condition, call Powell Law. Your first consultation is free. Contact us online www.powell-law.com or call (570) 961-0777.
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