Takata Compensation Fund Rejected for Airbag VictimsAugust 13th, 2015 by 1-800-THE-LAW2
Takata Compensation Fund Rejected for Airbag Victims
Following at least eight reported deaths and numerous injuries related to the Takata Airbag investigation, TK Holdings, Inc., “Takata,” rejects U.S. Senator Richard Blumenthal’s request for a compensation fund for alleged victims of its defective airbag inflators. The senator’s request for a compensation fund was denied as Takata’s North American executive vice president, Kevin Kennedy wrote in a letter to Sen. Blumenthal that, “a national compensation fund is not currently required.” The U.S. senator called for the establishment of a Takata compensation fund similar to the one created for General Motors, Co. (GM) to address victims in crashes tied to faulty ignition switches.
Despite consistent pressures from Sen. Blumenthal, Takata presently contends that litigation over the matter consolidated in federal courts adequately addresses victims’ legal claims. According to Kennedy, “Takata’s senior management has given the idea of a possible compensation fund careful consideration, [and]…will continue to evaluate the possible benefits of such a mechanism.” But for the time being, a Takata compensation fund is not to be expected.
If there’s No Compensation Fund, What’s next for Takata?
Executive vice president Kevin Kennedy said GM’s compensation fund specifically addresses victims who otherwise would not be able to sue due to a legal shield arising from the Detroit auto maker’s 2009 bankruptcy proceedings. Since Takata does not have such legal immunity, the company believes a Takata compensation fund is unnecessary.
Despite U.S. auto makers’ effort to fix about 32 million vehicles equipped with defective Takata airbags that can spontaneously explode and spray shrapnel throughout the passenger cabin, the airbag giant expects recall-related expenses to decline.
Additionally, Takata still faces widespread litigation as well as a Justice Department probe over the safety defect that could result in a considerable financial penalty. Earlier in July, the head of the National Highway Traffic Safety Administration (NHTSA) said U.S. regulators could hold a hearing later this year on Takata’s handling of the safety problem.
Injured by a Defective Product? Dial 1-800-380-8080 Today!
If you suffered an injury related to the Takata airbag defect, or any other product, a product liability or a personal injury lawyer from 1-800THE-LAW2 can help you receive the compensation you deserve. As a consumer, you trust the products you buy will work properly. In turn, you trust manufacturers will provide you with safe products. Remember, you have a limited window to file a claim, and a lawyer can help you get maximum compensation for your injuries. Call 1-800-380-8080 now for your FREE legal consultation. Either you get paid, or you don’t pay at all™!
- Mike Spector. “Takata: No Fund for Airbag Victims.” The Wall Street Journal. July 11, 2015. Print.