$299M Ford Air Bag Class Action Settlement Gets Final Approval

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Class representatives secured final approval of a near $300 million Ford air bag class action settlement from a federal judge.

The Ford air bag class action settlement stems from an enormous class action lawsuit over allegedly defective Takata air bags.

Car owners began filing class action lawsuit against Takata, Ford, and other car makers after it was discovered that ammonium nitrate, used to inflate the air bags, can explode unexpectedly and shower passengers with metal fallout.

As a part of the sweeping multidistrict litigation (MDL) that consumed class action lawsuits against the air bag manufacturer, Takata, as well as car maker Ford agreed to pay $299.1 million to settle allegations against it.

In addition to funding repairs, the car maker agreed to pay for rental vehicles for Class Members while their vehicles have the defective airbag repaired.

Class Members will be notified using a number of methods under the terms of the Ford air bag class action settlement, including mail, email, phone, by advertisement, and representatives will even be sent to notify consumers in-person.

In addition to rental vehicles and the cost of repairing the allegedly defective Takata air bags, Ford will reimburse Class Members for up to $500 in out-of-pocket expenses related to the problem.

There were a number of objections filed in response to the preliminarily approved Ford air bag class action settlement. The primary objection was the amount in attorneys’ fees – nearly $75 million, or 25 percent of the settlement award.

“In the recent Honda’ and Nissan settlements, the Court reduced by 10% Class Counsel’s request for attorneys’ fees from the requested 30% to 20% of the respective common funds,” noted the final approval order in the Ford air bag class action settlement.

“Here, and consistent with the Court’s two prior attorneys’ fees reductions, Class Counsel preemptively reduced its attorneys’ fees request to 25%…the Court concludes Class Counsel’s instant request for attorneys’ fees totaling $74,775,000, or 25% of the $299,100,000 common fund, is reasonable.”

U.S. District Court Judge Federico Moreno dismissed this and other objections, noting that the issues brought up by the objectors had been resolved in other settlements related to the same MDL.

Ford joins Honda, Subaru, Nissan, Mazda, Toyota, and BMW in settling class action lawsuit claims over Takata air bags. A number of other car makers, including GM, Fiat Chrysler, Volkswagen, and Mercedes-Benz, have yet to enter into settlement agreements.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

Class Members are represented by Peter Prieto of Podhurst Orseck PA and by Boies Schiller Flexner LLP, Colson Hicks Eidson, Power Rogers & Smith LLP, Lieff Cabraser Heimann & Bernstein LLP, Carella Byrne Cecchi Olstein Brody & Agnello PC and Baron & Budd PC.

The Takata Airbag Defect Class Action Lawsuit is In re: Takata Airbag Products Liability Litigation, Case No. 1:15-md-02599, in the U.S. District Court for the Southern District of Florida.

UPDATE: On April 7, 2020, Top Class Actions viewers started receiving checks in the mail from the Takata airbags class action settlement worth as much as $400. Congratulations to everyone who filed a claim and got PAID!