Making matters worse, the evidence showed that Takata Corp. knew that the airbags were defective and potentially lethal. Takata quickly settled dozens of lawsuits filed against them for the airbags handing out large settlements under seal and never admitting liability. The maneuver was meant to keep automakers in the dark concerning potential problems with the design. Nonetheless, every major automaker has been hit with a lawsuit.

Toyota, Subaru, and Mazda settled for a reported $553 million, while Nissan settled for $98 million and Honda settled for over $600 million. GMC, Chrysler, Volkswagen, and Mercedes are still fighting battles in court. Ford was the most recent company to suffer a significant economic loss paying $299 million to victims of the defective airbag.

Takata itself agreed to pay $650 million in consumer protection claims across the states, but the states will likely never see a dime of that money. Takata has basically been bankrupted by the millions of dollars it has had to pay out in catastrophic injury and wrongful death lawsuits and is currently having its debts reorganized in Chapter 11.

Economic Losses

Each of the auto companies that used Takata airbags in their vehicles has been hit with lawsuits. The latest lawsuits have been for economic damages related to the recall and reinstallation of safe airbags. Those who have had to have their airbag replaced because it’s a potential safety hazard have each been awarded $500 for the cost and use of a rental vehicle.

Personal Injury Trust

In the process of settling with Takata after word broke that they had covered up their product’s dangerous defects, the court set up a trust for victims when it became apparent that Takata was bankrupted. The problem for Takata was that they lied, covered up the defect, and allowed their products to be distributed without warning. Because of this, plaintiffs were awarded punitive damages. Punitive damages are awarded when the defendant’s negligence is so egregious that they deserve to be punished on top of paying for the plaintiff’s injuries. Since Takata allowed a potentially lethal product on the market, they were crucified in court.

On top of that, the Department of Justice filed a criminal case against Takata setting aside $125 million for victims of the defective airbag. As a part of their bankruptcy settlement, Takata was forced to set aside another $140 million in a trust for personal injury and wrongful death victims.

The funds are designed to compensate those who have been or may yet still be injured by the airbags.

Have You Been Injured by a Dangerous Product?

Miami personal injury attorney Alan Goldfarb can help you recover damages when you’ve been injured by a defective product. Give us a call at (305) 371-3111 or contact us online, and we can begin preparing your case immediately.

Resource:

latimes.com/business/autos/la-fi-hy-takata-settlement-20180222-story.html

Car Product Safety Recalls

Not only are used car dealers not required by law to repair known defects, as of now dealerships also do not have any requirements to disclose that the vehicle is even subject to a product recall. This very concerning fact places the burden on the consumer to determine whether their vehicle is safe—an added expense that most Americans would not think necessary to incur.

Retailers, manufacturers, and distributors all have an obligation to their customers to provide products reasonably safe for use. It is, therefore, confusing as to why used car dealers are not presently required by law to make such disclosures. Part of the rationale behind the non-disclosure may be the fact that this product recall information is available through services such as CarFax, but there are concerns that buyers may either not know this or may not be able to afford these services. Another rationale may be a belief that the car manufacturers will individually reach out to purchasers, which is partly true. If a car is (properly) registered, the owner of a car with recalled parts or necessary service updates will receive information if and when the company distributes it to their known consumers. New purchasers or purchasers of used vehicles, however, may be out of luck in that their information might not have made the database yet, if at all.

The single best thing to do as a consumer is always take the time to be informed. There is no expense too great to save your life. In fact, the Florida Highway Safety and Motor Vehicles website provides excellent resources on how to check for current product recalls, understand your obligations as a used car buyer, and what to check for on a test drive. Knowing what to look for before making a purchase will help protect the safety of you and your family.

Automotive Product Liability Lawyers

Product recalls are an all-too-common phenomenon, particularly among the car industry. If you or anyone you know has been injured or killed in a vehicle accident due to a faulty product, manufacturing defect, or design flaw, you may be entitled to compensation. At Alan Goldfarb, P.A., our team of experienced product liability attorneys understands the emotional and financial impact an auto accident can have on your life. Our clients can rest assured that we will advocate tirelessly on their behalf to ensure they receive the compensation they are entitled to by law. If you have any questions about your legal rights after being injured due to a faulty product, contact our Miami offices today for a free consultation.