(Legal Newsline) — The U.S. Department of Justice announced Feb. 27 that Takata
Corporation, a leading supplier of automotive safety equipment based in Tokyo,
will pay $1 billion for allegations of selling defective airbags.
“For over a decade, Takata lied to its customers about the
safety and reliability of its ammonium nitrate-based airbag inflators,” said acting assistant attorney general Kenneth Blanco. “Takata abused the trust of both its
customers and the public by allowing airbag inflators to be put in vehicles
knowing that the inflators did not meet the required specifications. [This] sentence shows that the department
will work tirelessly to hold responsible those who engage in this type of
to allegations, Takata conducted a scheme to defraud customers from 2000 to
2015 by giving false airbag inflator test data to auto manufacturers to make the
airbags seem safer. Executives at the company allegedly refused to provide true
and accurate information even after the company’s airbags had performance
problems in the field.
commission of fraudulent activity by the Takata Corporation to generate
corporate profits jeopardized the safety of American consumers,” said special
agent in charge David Gelios.