Takata Judge Halts Air-Bag Suits Against Automakers for 90 Days

Takata Corp. and its automaker customers won’t have to immediately face lawsuits from two states and hundreds of individual car owners who claim to have been hurt by faulty airbags, a federal judge ruled Aug. 16 (In re TK Holdings Inc., Bankr. D. Del., 17-11375, 8/16/17).

Brendan Linehan Shannon, chief judge for the U.S. Bankruptcy Court for the District of Delaware, halted the lawsuits for 90 days so the parts company and automakers, including Honda, Toyota, Volkswagen, can focus on developing a plan to reorganize Takata in bankruptcy.

A key part of that effort will involve dealing with ...