The Wall Street Journal (12/28, Spector, Viswanatha, Subscription Publication, 6.37M) reports Takata Corp. is discussing with Justice Department officials the possibility of pleading guilty to criminal misconduct in order to resolve allegations regarding its handling of air bags prone to rupturing that have been linked to numerous injuries and deaths. The Journal says Takata is expected to pay from hundreds of millions to $1 billion to settle the case, some of which would be paid up front.
USA Today (12/28, Bomey, 5.28M) reports the company “has been negotiating a deal that could involve the company pleading guilty to a range of charges, potentially including wire fraud, according to the Journal.” USA Today adds, “A settlement is viewed as a key next step for Takata as it weighs a sweeping restructuring plan that could involve a sale to a rival supplier and a bankruptcy restructuring to wipe out liabilities.”
Bloomberg News (12/29, Ma, Lee, 2.41M) reports the company’s shares “rose by the daily limit” after the Wall Street Journal’s report.
Reuters (12/28, Shepardson, Banerjee) reports Takata “could settle criminal charges…before the Obama administration leaves office next month, a source briefed on the ongoing talks told Reuters on Wednesday.” The Justice Department “has investigated whether Takata hid information from safety regulators and issued misleading statements about the dangers posed by the air bags.”
Learn about Gill & Chamas’ legal representation options regarding airbag safety and airbag injuries.