Takata to Suspend Lawsuits against Automakers

On Wednesday, Takata Corp. asked a federal judge to suspend lawsuits against automakers that people have claimed to be injured by their faulty air bag inflators. In June, Takata and TK Holdings Inc. filed for bankruptcy where they faced billions of dollars in liabilities from their inflators which led to a huge recall. Already, the company had many lawsuits regarding injuries, wrongful death, economic loss and breach of consumer protection laws.

Last month, TK Holdings requested an injunction to suspend lawsuits against automakers that use their inflators. Without it, the company wouldn’t be able to sell their operations to Key Safety Systems for $1.6 billion and could also threaten the supply of air bag inflators to replace recalled ones. This injunction is definitely an abuse of the bankruptcy laws for the benefit of automobile manufacturers.

Takata air bags has linked to at least 18 deaths and 180 injuries worldwide. By 2019, the company expects 125 million of their vehicles to be recalled. $125 million is to be set aside for those injured by their air bags as part of a guilty plea but lawyers believe that it will not be enough to cover all the damages.

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