Walker announced Takata settlement with $1.5 million projected for Virgin Islands

Attorney General Claude Earl Walker announced on May 14, 2018, that the Virgin Islands had reached a settlement with Takata Corp. and its U.S. subsidiary, TK Holdings Inc., over claims tied to the manufacturing, marketing and sale of Takata airbags installed in vehicles sold to Virgin Islands consumers.

Government House said the settlement, reached with Hawaii and New Mexico, was projected to total about $7 million. The Virgin Islands' share was projected at about $1.5 million.

According to the announcement, a significant portion of the Virgin Islands proceeds was to be used to compensate as many as 2,500 consumers who owned older vehicles containing Takata airbags, with payments of $200 each. The release said 1,217 consumers would be selected from St. Croix, a similar number from St. Thomas, and 67 from St. John.

The Justice Department had sued Takata and Honda in May 2016, alleging they concealed and misrepresented risks posed by the airbags in vehicles sold and leased in the territory. In 2017, the department filed a second lawsuit against Toyota, Nissan and Ford.

Takata had filed for bankruptcy in 2017. The announcement said the settlement had been approved by the bankruptcy court.

At the May 14 press conference, Bureau of Motor Vehicles Commissioner Lawrence Olive also repeated a National Highway Traffic Safety Administration advisory urging motorists not to drive certain recalled vehicles unless they were going directly to a dealer for repairs. The models listed were 2001-2002 Honda Civic, 2001-2002 Honda Accord, 2002-2003 Acura TL, 2002 Honda CR-V, 2002 Honda Odyssey, 2003 Acura CL, 2003 Honda Pilot, certain 2006 Ford Rangers and certain 2006 Mazda B Series vehicles.

Official source: https://www.vi.gov/ag-walker-announces-largest-payout-to-v-i-consumers-directly/