Takata Will Pay Whopping $1 Billion After Pleading Guilty to Air-Bag Fraud

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Japanese auto part manufacturer Takata will pay $1 billion after pleading guilty in a Detroit federal court to selling faulty air bags. The company admitted to concealing defects that would cause the airbag to explode, sending loose parts flying toward passengers. The U.S. is seeking to extradite three Takata executives on criminal charges.

The $1 billion payout includes $850 million to automakers, $125 million to air bag victims, and a $25 million criminal fine. The company is also expected to face future suits from individual victims. Read more.

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