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The Ins And Outs Of Takata Filing For Bankruptcy And What It Means To Victims

With around 100 million air bag inflators recalled, Takata is becoming a name that people talk about daily. Unfortunately, this recognition comes on bad terms, as at least 180 injuries and 16 deaths have occurred worldwide, due to the exploding metal canisters. Recently, a bankruptcy filing by the company took place, which will protect its Japanese and United States operations, while also selling assets to a key competitor in the industry, Key Safety Systems Inc. According to many experts, this is bad news for the victims that are seeking compensation for the injuries incurred by the inflators.

Little Money Expected To Remain For Victims

There is not much information available, on the price involved in the acquisition of Takata, but the majority of the proceeds will go to car manufacturers as restitution for the recall costs. The organization pleaded guilty to Fraud in February and agreed to pay out a settlement of 1 billion bucks. However, $850 million goes to auto makers, and $25 million goes to the government for fines. Previously, Takata placed $125 million in a fund for victims, but that money is expected to disappear quickly because of the severity of the injuries, and the impact that they have on ways of life.

Just in case you have not heard the story, investigators determined that the chemical ammonium nitrate, used to deploy these air bags, became unstable after being exposed to harsh elements like extreme heat and humidity. When these conditions exist, the chemical can deteriorate, which causes the metal canister to explode, and often sends metal shards and fragments straight at a person’s face. Lacerations and bruises are minor injuries that may occur, while more severe ones have left some victims unable to control the muscles in their face, and yet others pay with their life.

Experts are predicting the victims will only be paid around 5 to 10 cents on the dollar, which is relatively small when compared to what they would receive from a financially stable corporation. If the purchasing price of Takata is over $1 billion, a pool could be set up to pay more, but the deal is likely to protect Key Safety Systems Inc, from future liabilities for past events or claims. Some lawsuits are being brought against automakers as well, but not much resolve is expected to come from them. Takata says that they concealed the information from everyone, including car manufacturers, but many attorneys say there is sufficient evidence to prove otherwise.

More Than 50 Million Of These Inflators Are Still On The Roads

Data shows that only about 22% of the affected units have been replaced thus far, leaving roughly 54 million more still in our vehicles. More and more injuries and deaths are likely to occur, and it looks as if victims may be drawing the short straw. However, if you have become injured by one of these items, or another broken piece of equipment, we will be more than happy to assist you. Our team is prepared, willing, and able to take cases, which large corporations with their vast legal teams are a part of, the distance to get you the most compensation for your injuries. Keep fighting the good fight, and put a winning commodity in your corner by contacting our office to discuss your legal options.

Michael J. Babboni's wide-ranging legal career is based on the strong belief that everyone should be treated fairly and have access to effective legal help. Michael began putting his beliefs in action by helping the people of St. Petersburg Florida get what they are owed in civil trials fighting to protect families by making corporations pay, and honor their obligations.

The Ins And Outs Of Takata Filing For Bankruptcy And What It Means To Victims

Goldman Babboni Fernandez
Murphy & Walsh

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