Takata to plead guilty, to pay $1B for hiding air bag defect

In this May 4, 2016, file photo, visitors walk by a Takata Corp. desk at an automaker's showroom in Tokyo. The National Highway Traffic Safety Administration said Thursday, June 30, 2016, it is urging owners of 313,000 older Hondas and Acuras to stop driving them and get them repaired after new tests found that their Takata air bag inflators are extremely dangerous. The agency's urgent advisory covers 2001 and 2002 Honda Civics and Accords, the 2002 and 2003 Acura TL, the 2002 Honda Odyssey and CR-V, and the 2003 Acura CL and Honda Pilot, NHTSA said. "These vehicles are unsafe and need to be repaired immediately," Transportation Secretary Anthony Foxx said in a statement. "Folks should not drive these vehicles unless they are going straight to a dealer to have them repaired." (AP Photo/Shizuo Kambayashi, File)

DETROIT (AP) — Takata Corp. has agreed to plead guilty to a single criminal charge and will pay $1 billion in fines and restitution for concealing a deadly defect in its air bag inflators.

The U.S. Attorney’s Office in Detroit announced the plea deal on Friday.

Takata will pay a $25 million criminal fine, $125 million to individuals who were injured by the air bags and $850 million to automakers that purchased the inflators. The U.S. district court in Detroit has appointed attorney Kenneth Feinberg to distribute restitution payments.

Payments to individuals must be made soon. Money due to automakers must be paid within five days of Takata’s anticipated sale or merger. Takata is expected to be sold to another auto supplier or investor sometime this year.

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