Takata pleads guilty, will pay $1B for hiding air bag defect

FILE PHOTO - In this Sunday, Nov. 20, 2016, photo, a Honda technician works on an air bag during a free replacement event in Kuala Lumpur, Malaysia. Five Malaysians have died in accidents linked to faulty Takata air bags that are at the center of one of the world’s largest auto recalls. (AP Photo/Lim Huey Teng)
FILE PHOTO - In this Sunday, Nov. 20, 2016, photo, a Honda technician works on an air bag during a free replacement event in Kuala Lumpur, Malaysia. Five Malaysians have died in accidents linked to faulty Takata air bags that are at the center of one of the world’s largest auto recalls. (AP Photo/Lim Huey Teng)

DETROIT (AP) – Takata Corp. has agreed to plead guilty to a single criminal charge and will pay $1 billion in fines and restitution for concealing a deadly defect in its air bag inflators.

The U.S. Attorney’s Office in Detroit announced the plea deal on Friday.

Takata will pay a $25 million criminal fine, $125 million to individuals who were injured by the air bags and $850 million to automakers that purchased the inflators. The U.S. district court in Detroit has appointed attorney Kenneth Feinberg to distribute restitution payments.

Payments to individuals must be made soon. Money due to automakers must be paid within five days of Takata’s anticipated sale or merger. Takata is expected to be sold to another auto supplier or investor sometime this year.

 

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