Takata Corp pleads guilty, agrees to pay USD 1 billion for concealing deadly defect in air bags

Takata Corp. has agreed to plead guilty to a single criminal charge and will pay USD 1 billionin fines and restitution for concealing a deadly defect in its air bag inflators.

The US Attorney's Office in Detroit announced the plea deal on Saturday. Takata will pay a USD 25 million criminal fine, USD 125 million to individuals who were injured by the air bags andUSD 850 million to automakers that purchased the inflators.  

The US 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.