Wilmington/New York — The global recall of Takata’s defective air bags widened last week and the number of confirmed deaths rose, but legal experts said the bigger worry for car companies caught in the fall-out was playing out in a Delaware bankruptcy courtroom. Earlier in July, people injured by the air bags, which degrade over time and can inflate with excessive force, were appointed to their own official committee in the Japanese company’s US bankruptcy, giving them a powerful voice in the proceedings. This unusual committee, which includes people whose cars lost value due to the recall, will be pitted against Honda, Toyota and other vehicle makers. The car companies have been trying to use the bankruptcy to limit their liability for installing the faulty air bags, said Kevin Dean, a Motley Rice attorney who represents injured drivers on the committee. Because the committee has official status, Takata must provide it with funds which can be used to investigate the vehicle makers’...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.