Massive Bankruptcy Follows Massive Suits In Re Takata
The Japanese airbag company Takata rose and fell rapidly. The company’s stunning destruction was of its own doing. Its faulty airbags installed in some vehicles caused both injuries and deaths. The billions of dollars of issues surrounding the defective products ultimately pushed the company into bankruptcy.
Now that the company is behind Japan’s equivalent of Chapter 11, what does that mean for Americans hurt by its defective products? Lawsuits and pending litigation still stand against the corporation.
Bloomberg reported on some of the impacts. Takata promised replacements for tens of millions of faulty airbags, which now seems unlikely. The announcement will place the company in stasis. This decision follows a $1.62 billion takeover bid by another company, Key Safety Systems.
Key hasn’t stated whether it will replace the faulty parts. While Takata’s assets will be auctioned off, it appears its recall obligations will not follow suit. At least some of the impact of the recall should be offset by auction. Up to $2 billion in assets go to the block.
Takata is on the hook for about the same in costs. However, the 19 car manufacturers hurt by the airbag giant is still on the hook for about $3 billion in additional costs.
What Happens to Consumers?
Consumers still on the hook for injuries or replacements from Takata still have a chance. However, the window is closing. Bankruptcy laws may lock in existing suits and prevent future ones from affecting. Even if the cases are allowed to proceed, the diminishing assets may make recovery very difficult.
If you believe your family may be entitled to compensation, contact a skilled attorney today. The Ehline Law Firm Personal Injury Attorneys, APLC’s experience is key. We handled Takata and airbag cases before. Simply put: in California, we’re the best. Our team is second to none. We will assess your family’s legal options and guide you fairly. Call or email us for a free, no-pressure consultation.