Takata Settles Air-Bag Claims to Clear Way Out of Bankruptcy

Takata Corp.’s U.S. operations, pushed into bankruptcy by the largest automotive recall in U.S. history, settled with two groups representing victims of its faulty air bags, the company said in court documents.

Two committees for people suing over the air bags have agreed to support a bankruptcy-exit plan that would resolve lawsuits by channeling them into a trust funded in part by the sale of Takata assets.

Takata has recalled millions of air bags that had been linked to deaths in the U.S. Defective air bags can explode in car crashes, sending metal shards flying. Japan-based Takata entered a guilty ...