Japanese company Takata Corp. on Friday agreed [DOJ report] to plead guilty to criminal wrongdoing charges and pay $1 billion as a result of a US Department of Justice (DOJ) [official website] investigation into airbag defects which caused the death of at least 16 people. The $1 billion is made up of a $25 million fine, $125 million to compensate victims – current and future and $850 million to compensate automakers for recall costs associated with the airbag defects. The plea agreement, which must still be approved by the Michigan District Attorney, was announced just after three Takata executives were indicted on charges of conspiracy and wire fraud for falsifying test results to conceal the airbag defect in 2000. Takata and Japanese investors were pleased [Reuters report] with the potential agreement and hoped that the agreement would secure investment in Takata in the future.

Auto manufacturers have continued to face punishment for issues with their vehicles and parts in the US. In July the NHTSA determined [JURIST report] that Fiat Chrysler failed to provide a remedy and notices for 23 recalls related to malfunctions of their automobiles. In 2014, the US DOJ announced [JURIST report] a $1.2 billion settlement agreement with Toyota for misleading customers and US regulators. In November 2012 Toyota settled [JURIST report] a class action lawsuit for $35.5 million brought by its shareholders for failing to disclose vehicle quality issues. In 2010 Toyota agreed [JURIST report] to pay $32.4 million in fines following investigations by the National Highway Traffic Safety Administration. JURIST Guest Columnist Bruce Aronson in 2011 argued [JURIST op-ed] that the recent corporate scandals in Japan, including the Toyota recalls, highlight the need for reform of that country’s corporate governance structure.