Ford Agrees to Pay $299.1 Million to Resolve Air-Bag Lawsuit
July 16 2018 - 7:12PM
Dow Jones News
By Micah Maidenberg
Ford Motor Co. has agreed to pay at least $299.1 million to
resolve a class-action lawsuit over its use of defective Takata
Corp. airbag inflaters in more than 6 million vehicles.
The proposed settlement was reached after several weeks of
negotiation, said Peter Prieto, the lead counsel for the plaintiffs
in the case, owners and lessees of Ford vehicles that included the
Takata airbag inflaters. Drivers sued Takata, Ford and other car
makers over the faulty parts more three years ago. The plan must be
approved by Judge Federico A. Moreno of the U.S. District Court for
the Southern District of Florida in Miami.
The proposed settlement covers only economic issues discussed in
the class-action lawsuit; it doesn't resolve personal injury or
property damage claims, or those brought by auto recyclers.
Most of the money Ford agreed to spend would go to drivers of
affected vehicles, who would be able to submit claims for
reimbursement to an administrator for review. Eligible costs
include towing or storing affected vehicles, transportation
expenses related to the recall and wages lost during the recall
process.
The car maker also agreed to fund a rental-car program to cover
the costs of loaner cars for drivers whose vehicles were recalled
and are awaiting repairs or replacement parts. Ford would also pay
attorney fees and other costs related to the settlement.
"Safety is our priority. We remain focused on working with our
customers to get their vehicles repaired," a Ford spokeswoman said
in an email.
If Judge Moreno agrees with the deal, class members will be
notified and will have a chance to approve or deny it, Mr. Prieto
said. Should class members approve the settlement, the judge will
schedule a hearing to approve or reject the agreement.
"We expect...virtually the entire class will approve the deal
and we hope the court will approve it, just like it did in six
prior settlements" related to the Takata airbag inflaters, Mr.
Prieto said. Toyota Motor Corp., BMW AG, Mazda Motor Corp., Subaru
Corp., Nissan Motor Co. and Honda Motor Co. have also settled
Takata-related class-action suits against them.
Shares in Ford dropped 1.2% Monday to close at $10.85.
Car manufacturers have issued recalls for at least 42 million
vehicles in the U.S. that used faulty Takata airbag inflaters that
can explode and even hit drivers with shrapnel when deployed.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
July 16, 2018 18:57 ET (22:57 GMT)
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