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Takata Airbag MDL Settlement By Honda

Takata Airbag MDL Settlement By Honda

For more information, please contact The Ahearne Law Firm, PLLC for an initial consultation and case evaluation. Call nationwide at (845) 986-2777.

Honda Motor Co. has recently agreed to pay $484 million to settle economic-loss claims tied to Takata Corp. air bag recalls, bringing total settlements in the multidistrict litigation over the faulty safety devices to more than $1 billion (IN RE: TAKATA AIRBAG PRODUCTS LIABILITY LITIGATION, MDL No. 2599).The consumers sued the automakers and Takata claiming they had to pay for vehicle rentals and incurred other economic losses while waiting for the air bags to be replaced. They also said the automakers and Takata weren’t recalling and replacing defective air bags quickly enough.

The agreement will provide for faster replacement of recalled air bags and reimburse customers for out-of-pocket costs. The settlement must be approved by Judge Moreno of the United States District Court, Southern District of Florida, and does not cover personal injury claims related to faulty Takata airbags. As part of the settlement, Honda will create a fund of almost $200 million to expand its efforts to reach owners who haven’t responded to recall notices, or who haven’t been located. The total negotiated value of the settlement was $605 million, but the plaintiffs agreed to a 20 percent discount in Honda’s out-of-pocket expenses in view of its prior efforts to repair affected vehicles and provide loaner cars.

The Honda settlement follows a $533 million settlement with four other automakers reached in May. That agreement with Toyota Motor Corp., Subaru Corp., Mazda Motor Corp. and Bayerische Motoren Werke AG won preliminary court approval in June. Nissan Motor Co. agreed to pay $98 million last month.

Recall

Vehicles made by 19 different automakers have been recalled to replace frontal airbags on the driver’s side or passenger’s side, or both in what National Highway Traffic Safety Administration (NHTSA) has called “the largest and most complex safety recall in U.S. history.” The airbags, made by major parts supplier Takata, were mostly installed in cars from model year 2002 through 2015. Some of those airbags could deploy explosively, injuring or even killing car occupants. At the heart of the problem is the airbag’s inflator, a metal cartridge loaded with propellant wafers, which in some cases has ignited with explosive force. If the inflator housing ruptures in a crash, metal shards from the airbag can be sprayed throughout the passenger cabin—a potentially disastrous outcome from a supposedly life-saving device. The NHTSA has determined the root cause of the problem: — airbags that use ammonium nitrate-based propellent without a chemical drying agent. Environmental moisture, high temperatures, and age as associated with the defect that can improperly inflate the airbags and even send shrapnel into the occupant.

Through various announcements, the recall has tripled in size over the past year. It is expected that the inflator recall will impact more than 42 million vehicles in the U.S., with the total number of airbags being between 65 and 70 million. The massive Takata air bag recalls, the largest in history, led to the company’s filing for bankruptcy in June and spurred lawsuits by consumers and accident victims. The air bags are linked to at least 17 deaths worldwide.

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If you or a family member have suffered injuries from a Takata airbag, you and/or your family member may be entitled to money damages.

The Ahearne Law Firm, PLLC

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For more information, please contact The Ahearne Law Firm, PLLC for an initial consultation and case evaluation. Call nationwide at (845) 986-2777.

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