Takata agrees to plead guilty, pay $1 billion for hiding air bag defect
DETROIT (AP) - Takata Corp. has agreed to plead guilty to a single criminal charge and will pay $1 billion in fines and restitution for concealing a deadly defect in its air bag inflators.
The U.S. Attorney's Office in Detroit announced the plea deal on Friday.
Takata will pay a $25 million criminal fine, $125 million to individuals who were injured by the air bags and $850 million to automakers that purchased the inflators. The U.S. district court in Detroit has appointed attorney Kenneth Feinberg to distribute restitution payments.
Payments to individuals must be made soon. Money due to automakers must be paid within five days of Takata's anticipated sale or merger. Takata is expected to be sold to another auto supplier or investor sometime this year.
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