Takata files bankruptcy: What does this mean?

10Investigates: Takata files bankruptcy during recalls

It was the company behind that largest recall in U.S. history.

Now, Takata has filed for bankruptcy.

Click here for the Notice of Bankruptcy File.

So what does this mean for cars that still need to be fixed?    

It could mean that the major automakers who used Takata airbags in their cars could also end up footing the bill that's estimated to be more than $5 billion. That’s what is needed to replace the millions of cars with recalled airbags.

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Only about 35% of the cars have been replaced as of now.

11 people were killed and 180 people were injured by the faulty airbags.

So what about those people and their families that have filed lawsuits against the company?

Lawyer Frank Melton who is representing some of the families who have filed suit against the company, including Tiffany Vu.

He says this will leave the families very little money now because this company is no longer financially strong.
“It absolutely does. One of the biggest problems in this litigation is $125 is going to victims and that’s supposed to last until 2035, with an unknown number of people that may be hurt in future.

There are so many claims already actively pending and all those people will be directed to the settlement if that money lasts that long,” says R. Frank Melton, an Attorney with Newsome Melton Law Firm.

The National Highway Transportation Safety Administration keeps track of all the airbag recalls.
They've got a complete list on their website.

Finally, consumers can use this opportunity to check to see if their own vehicles have any outstanding recalls here.  Unfortunately, the rate of recalls fixed among consumer vehicles isn’t much better than for-hire vehicles, putting lives on the line due to unreliable parts.

© 2017 WTSP-TV


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