Great News for Takata Airbag Victims
On Saturday, the law firm representing suit against the U.S division of Takata Corp confirmed that they hade received approval from Judge Brendan Shannon to proceed with a bankruptcy plan to resolve their massive lawsuit debt. The approval allows for a sale of the company’s assets amounting to $1.6 billion to compensate people who have been injured, or even killed by the defective airbags made by the company.
Last year, due to the largest recall in automotive history, TK Holdings Inc was forced to file for bankruptcy along with its parent company Takata. The airbags that the company produced had two major flaws. They would often deploy with more force than necessary, as well as spraying burning hot fragments of metal. At least 22 deaths have been linked to the defective airbags, as well as injuries in the hundreds.
The Motley Rice law firm who represented the injured drivers in the case was glad to announce the news. They have high hopes that the two dozen plus clients they represent will be able to use the settlement to move on with their lives. The settlement is being provided by the bankruptcy claim in conjunction with contributions from the automotive manufacturers that had the airbags installed in their vehicles.
The majority of Takata, including the U.S. division, is being dissolved in the bankruptcy claim and all airbag production involvement by the company will be ended. Key Safety Systems, a Chinese technology company will, be buying out the portion of Takata not related to airbags.