Takata pleads guilty to US fraud charge linked to faulty airbag inflators

detroit — Japan’s Takata Corp on Monday pleaded guilty to a felony charge as part of an expected $1 billion deal with the US Justice Department that includes compensation funds for automakers and victims of its faulty airbag inflators.

After Takata’s guilty plea, a federal judge in Detroit was hearing objections on Monday to the settlement raised by lawyers for some victims of Takata inflator ruptures, who argue the settlement will be used by automakers to avoid liability, a court clerk said.

Takata hopes to wins court approval of the settlement, a key hurdle to securing the backing of an investor or acquirer that can fund a turnaround effort and help it grapple with billions of dollars in costs related to the auto industry’s biggest-ever recall.

Lawyers for US vehicle owners have sued Honda Motor Co, Nissan Motor Co, BMW AG, Ford Motor Co, Mazda Motor Corp and other automakers, alleging they knew about the defective Takata air bags for years but kept using them.

At least 16 deaths have been linked to exploding Takata airbag inflators. The defects have led 10 automakers to recall more than 31 million cars worldwide since 2008. All but one of the deaths have occurred in Honda vehicles.

Kevin Dean, a South Carolina lawyer for some Takata victims suing automakers, said in a court filing on Monday that the plea agreement is “wrought with inaccurate, incomplete and misleading assertions of fact” that could help automakers avoid liability.

Takata last month had agreed to plead guilty to a single count of wire fraud related to receiving payment for the faulty deflators across state lines as part of a settlement with federal prosecutors.—