States To Forego Most Of $650M Legal Settlement With Takata
DETROIT (AP) – Japanese air bag maker Takata has reached a $650 million settlement over legal claims from 44 state governments and Washington, D.C. But the states won’t get much of the money.
That’s because they have agreed not to collect the settlement so victims of Takata’s faulty air bags get larger settlements.
Takata air bag inflators can explode with too much force and spew shrapnel into drivers and passengers. At least 22 people have died worldwide and more than 180 have been hurt.
The state attorneys general alleged that Takata concealed the air bag safety issues. South Carolina, which led the states, will get about $139,000 to cover investigation costs.
Takata filed for federal bankruptcy protection in June, and its reorganization plan was approved last week by a judge in Delaware.