Louisiana is one of 44 states and Washington D.C. to reach a $650 million settlement agreement with Japanese air bag maker Takata over claims the company failed to timely disclose defects in faulty air bags blamed for the deaths of at least 22 people.
But the states won’t get much of the money. That’s because they have agreed not to collect the settlement so victims of Takata’s faulty air bags can get larger settlements.
“A malfunction of this magnitude poses a direct threat to the citizens I took an oath to protect,” Attorney General Jeff Landry says in a statement. “My office and I will continue to investigate companies that engage in unsafe and deceptive trade practices and do all we legally can to make our communities safer.”
Takata air bag inflators can explode with too much force and spew shrapnel into drivers and passengers. At least 22 people have died worldwide and more than 180 have been hurt.
The state attorneys general alleged that Takata concealed the air bag safety issues. Under the terms of the agreement, TK Holdings—a subsidiary of Takata—will reimburse the states for their investigative costs and for the entry of stipulated civil penalty. The company also has agreed to a number of stipulations such as not advertising or representing the safety of air bags in a deceptive manner. Takata filed for federal bankruptcy protection in June, and its reorganization plan was approved last week by a judge in Delaware.
