Massive Bankruptcy Follows Massive Suits In Re Takata
The Japanese airbag company Takata rose and fell rapidly. But the company's stunning destruction was of its own doing. After all, it knew that its faulty airbags had the potential to cause avoidable injuries and deaths. But billions of dollars of issues surrounding the defective products ultimately pushed the company into bankruptcy.
Now that the company is undergoing Japan's equivalent of Chapter 11, what does that mean for Americans hurt by its defective products? After all, 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. So 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 get 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. So up to $2 billion in assets go to the auctioneer's 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, 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 critical. We handled Takata and airbag cases before. Simply put: in California, our team is second to none. We will assess your family's legal options and honestly guide you. Call or email us for a free, no-pressure consultation.
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