Attorney General Curtis Hill announced a settlement with TK Holdings Inc., the U.S. subsidiary of Takata, over allegations that the company concealed safety issues related to airbag systems installed in a wide variety of vehicles. TK Holdings Inc. filed a bankruptcy case in Chapter 11 in June 2017, and its reorganization plan has been confirmed by the U.S. Bankruptcy Court for the District of Delaware. In addition to Indiana, the settlement with TK Holdings Inc. also is joined by the attorneys general of 43 other states and the District of Columbia. It concludes a multistate investigation into the company’s failure to disclose in a timely manner known safety defects associated with certain airbag inflators. TK Holdings Inc. has also agreed to reimburse the multistate coalition for its investigative costs, and for the entry of stipulated civil penalty in the amount of $650 million. The multistate coalition agreed that, given the pending bankruptcy and the company’s inability to pay its debts, this penalty would be subordinated in order to maximize the recovery available to consumers who were victims of this airbag defect.
February 28th, 2018|Local News|