Billion-dollar consequences for negligent acts

Airbags are designed to keep drivers and passengers safe in the event of a motor vehicle accident. However, when a product meant to prevent harm causes physical injuries, trust placed in the manufacturer is misplaced, if not irrevocably shattered.

In what spurred the largest automotive recall in U.S. history two days prior, the U.S. Justice Department penalized a Japanese automotive manufacturer and supplier of airbags for misconduct to the tune of a $1 billion.

Products That Protect Result In Injuries And Death

Prosecutors determined that Takata knowingly provided misleading test reports on its airbags to its users, the largest being Honda. The company’s findings were deliberately selective, incomplete or inaccurate and resulted in serious injuries and death.

The decision follows the discovery of faulty airbag inflators produced at two North America facilities owned by Takata. Investigations revealed that the airbags would "over-aggressively deploy." Shrapnel from "faulty, inferior, non-performing, non-compliant or dangerous inflators" killed fifteen people and injured hundreds, 184 in the U.S. alone.

The breakdown of the settlement includes:

  • $25 million criminal penalty
  • $850 million in restitution to automakers
  • $125 million towards a compensation fund for victims

Wide-Ranging Consequences For Deceptions And Cover-Ups

Takada has already paid $200 million in fines through a settlement with the National Highway Traffic Safety Administration. The NHTSA ordered several recalls involving tens of million vehicles in the U.S. equipped with Takata airbags. More than 42 million recalls occurred worldwide.

In addition to the record-setting fine, three Takata senior executives were indicted for the cover-up.

No Comments

Leave a comment
Comment Information
Steven H. Dorne

Attorney Steven H. Dorne

Attorney Steven H. Dorne is an accomplished lawyer who practices in state and federal courts in Maryland, Virginia and the District of Columbia. He brings more than 30 years of experience and a long record of success to each case. His law practice is distinguished by careful preparation and thorough analysis of each case...

Learn More
  • Virginia Trial Lawyers Association
  • ABA
  • Trial Lawyers Association Of Metropolitan Washington D.C | Working For Justice
  • Maryland Association For Justice
  • American Association For Justice
  • MSBA

Call Or Email For A Free Consultation

If you have suffered a personal injury in a car crash or other accident, need help with another type of dispute, we are prepared to help. Contact our lawyer online or call 877-234-4179 to schedule an initial consultation. There is no cost or obligation to contact us. Se habla español. For your convenience, we have offices in Washington D.C., Rockville, Greenbelt and Fairfax.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Rockville Office
200-A Monroe St.
Suite 100
Rockville, MD 20850

Toll Free: 877-234-4179
Phone: 301-637-8078
Fax: 301-251-0730
Map & Directions

Rockville Office

Washington D.C. Office
1150 Seventeenth St. NW
Suite 305
Washington, D.C. 20036

Toll Free: 877-234-4179
Phone: 301-637-8078
Fax: 301-251-0730
Map & Directions

Washington Office

Capital Office Park
6305 Ivy Lane
Suite 408
Greenbelt, MD 20770

Toll Free: 877-234-4179
Phone: 301-637-8078
Fax: 301-251-0730
Map & Directions

Greenbelt Office

Fairfax Office
10521 Judicial Dr.
Suite 303
Fairfax, VA 22030

Toll Free: 877-234-4179
Phone: 703-722-6446
Fax: 301-251-0730
Map & Directions

Fairfax Office
  • Toll Free 877-234-4179
  • Maryland/D.C. 301-637-8078
  • Virginia 703-722-6446
  • Fax 301-251-0730
Back To Top