Honda Settlement – Over $11 Million
On August 25, 2020, California Attorney General Xavier Becerra announced that a settlement had been reached in Honda/Takata airbag cases in the state. American Honda Motor Company, Inc. and Honda of America Manufacturing, Inc. (Honda) agreed to pay $11.375 million to conclude lawsuits that allege the company hid information regarding defects that resulted in safety issues in the front airbag systems manufactured and designed by Takata Corporation. Those faulty airbags were installed in particular Acura and models sold in the U.S. California’s settlement was reached in tandem with related multi-state settlements.
The settlement resolves an ongoing investigation into the allegation that Honda failed to inform consumers and regulators that the Takata frontal airbags installed in its vehicles presented a risk of exploding upon deployment. The exploding airbags would send dangerous shrapnel into the vehicle, even during minor impact collisions. Additionally, Honda has agreed to a number of terms designed to protect consumers, such as requirements that the company includes design features aimed at protecting vehicle occupants in case of an airbag rupture. Additional terms include a prohibition from engaging in misleading or false advertising as it relates to frontal airbag safety.
The settlement follows accusations that Honda failed to warn regulators and consumers for years about the potential danger associated with its airbags. The California Attorney General stated that this failure to warn endangered lives and violated Californians’ trust. He added that the state is ready to hold accountable all businesses that act in such a manner.
Dangerous Takata Airbags
Takata’s faulty airbags have been the subject of mass tort litigation. It is alleged in the Honda-related proceedings that Takata concealed the airbag safety risks from Honda officials. Honda has installed millions of faulty Takata airbags in its vehicles since 2001. Despite allegations of concealment by Takata, investigations revealed that it was suspected by Honda engineers by at least July 2009, if not earlier, that the Takata airbags posed a rupture risk. Despite the engineers’ concerns, Honda did not inform or warn consumers or regulators of the dangers. Ruptures of Takata airbags have resulted in three deaths in California, and 14 nationwide. They are also the cause of more than 200 injuries within the United States. Honda has recalled nearly 13 million Acura and Honda vehicles to date that were equipped with the dangerous airbags.
Additional Terms of the Settlement
The $11.375 million California settlement, along with the settlement of the related multi-state litigation, comes with further terms agreed to by Honda, which include:
- Misleading ads and representations at point of sale regarding the safety of the frontal airbags are prohibited.
- Required improvements in areas such as quality control, risk management, training, certifications, and supplier oversight.
- Mandatory whistleblower protections.
- Improvements to parts tracking and record-keeping, and changes in the company’s oversight of the procurement of airbags.
- Design features that would protect the vehicle occupants in the event of an airbag rupture are required.
- Procedures to prevent recurrence that require Honda to make improvements to its oversight of suppliers and approve the performance and designs of all frontal airbags before the company will consider them for installation in new vehicles.
The following YouTube video issued by IIHS discusses avoiding airbag injuries.
Elk Grove Personal Injury Lawyer
I’m Ed Smith, a personal injury lawyer in Elk Grove, California. Automobile accidents occur every day on the roads and highways in our region. If you or a family member have been injured due to the negligence of another driver, my law firm can help you recover financial damages. If you are seeking free and friendly legal advice, call us at (916) 694-0002 or if you are calling from outside the local area at (800) 404-5400. We also offer an online contact option.
For more than 38 years, I have advocated on behalf of injured Elk Grove residents. If you would like to learn more about our law firm, see the client reviews and case results that are accessible via the links below:
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