Ford to Pay $300M to Settle Takata Airbag Class Action Lawsuit

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Ford Motor Co. has reportedly agreed to pay nearly $300 million to settle its part in multidistrict litigation related to Takata airbags that can allegedly explode upon inflation, sending shards of metal into vehicles’ passenger compartments.

The Ford airbag settlement was preliminarily approved on Monday and the judge granted preliminary certification to a proposed Class of persons or entities who have owned and/or leased vehicles with the allegedly defective Takata airbags.

Millions of Class Members throughout the United States are expected to qualify.

The proposed Takata airbag class action settlement will increase the rate of removal of the allegedly defective airbag inflators from affected Ford vehicles. Ford has also agreed to inform affected consumers about the Takata airbag recall and to provide compensation for reasonable out-of-pocket expenses related to the Takata recall. Consumers who did not document their out-of-pocket expenses may be entitled to claim up to $500 in compensation.

Ford has also agreed to provide rental cars to Class Members while they wait for the Takata recall repairs to be completed.

The Takata airbag lawsuits were first filed in 2014 by plaintiffs who allege the ammonium nitrate used to inflate airbags can explode in humid conditions, ejecting chemicals and metal shards at vehicle occupants.

The Takata airbags have been linked to at least 11 deaths in the United States.

To date, Takata has pleaded guilty to wire fraud and agreed to pay $1 billion in fines and restitution. The company has also acknowledged it engaged in a scheme to deceive automakers and convince them to purchase airbag systems with inferior and/or defective inflators.

Six automakers have already reached settlements in order to escape the multidistrict litigation. Honda has agreed to pay more than $600 million and Nissan has agreed to pay $98 million to settle the Takata airbag MDL. In May 2017, Toyota, Subaru, Mazda and BMW agreed to pay nearly $555 million.

In March, new Takata airbag lawsuits were filed against Fiat Chrysler, General Motors LLC, Mercedes-Benz USA LLC and Volkswagen Group of America and were added to the sprawling Takata airbag MDL. The claims against these motor companies are still being litigated.

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, Aaron S. Podhurst, Stephen F. Rosenthal, John Gravante, Matthew P. Weinshall and Alissa Del Riego of Podhurst Orseck PA and other portions of the MDL are being handled by the law firms of 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 Sept. 5, 2018, Ford’s nearly $300 million settlement agreement for its part in a Takata airbag defect class action lawsuit was preliminarily approved by a federal judge.

UPDATE 2: On Dec. 20, 2018, Class representatives secured final approval of a near $300 million Ford air bag class action settlement from a federal judge.

UPDATE 3: 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!