State of Hawaii Files First Lawsuit Relating to Faulty Takata Airbags

News Release from DCCA, May 13, 2016

HONOLULU – The Department of Commerce and Consumer Affair’s Office of Consumer Protection, on behalf of the State of Hawai’i, today filed a lawsuit against Takata Corporation, TK Holdings, Inc., Honda Motor Co., American Honda Motor Co, and Honda of America Manufacturing, Inc. for making, supplying, and using airbags they knew to be unsafe. Hawai’i is the first state to file a lawsuit against these companies for their roles in causing millions of cars to be sold with airbags that could explode, posing grave, sometimes fatal, dangers to the cars’ occupants.

Hawai’i asserts claims under the State’s consumer protection laws for unfair and deceptive conduct. The complaint seeks declaratory and injunctive relief, including a meaningful campaign to educate drivers about the need to seek repairs, restitution for car buyers, disgorgement of the companies’ profits from these airbags, and the maximum civil penalties allowed by law of $10,000 per violation.

The State’s complaint alleges that Takata made the decision to switch to cheaper ammonium nitrate to inflate its airbags despite the known risks of ammonium nitrate, a chemical principally used to propel rockets and for mining and demolition. Though Takata’s own testing showed that the ammonium nitrate propellant was unpredictable and prone to explode, Takata sold its airbags to automakers knowing they would be installed in vehicles and sold to consumers. The complaint quotes one former Takata engineer, who has testified that, prior to the launch of the new inflators, he warned a manager that ‘if we go forward with [ammonium nitrate], someone will be killed.” As the complaint lays out, a dozen individuals have been killed when Takata airbags exploded in their cars, sending shrapnel through the vehicle, and more than one hundred have been injured.

The complaint also asserts that Takata hid its findings and doctored its data to hide the dangers of its airbags. According to publicly available documents and the State’s complaint, even when Honda became aware of the problems, it continued to sell cars equipped with Takata airbags and inadequately pursued recalls—saving money while subjecting consumers to an ongoing risk of serious injury and death.

Hawai’i is one of four states that was the original focus of efforts to recall vehicles with Takata airbags because of the greater risks posed in areas with high humidity and high temperatures. Roughly 70,000 vehicles with Takata airbags have been sold to Hawaii consumers. Nationally, according to data reported by the National Highway Traffic Safety Administration, only one-third to half of these airbags have been repaired or replaced.

“Companies that supply and market goods to Hawai’i consumers are obligated to deliver products that are safe and to provide consumers with full, accurate, and timely information when dangers become known. According to the facts alleged in the complaint, Takata and Honda put their own profits and reputations ahead of honesty and their customers’ safety. We intend to hold them accountable for their conduct,” said Stephen Levins, Executive Director of the State Office of Consumer Protection.

The complaint asserts two causes of action against the Takata and Honda companies, but also names anonymous “Doe Defendants.” The State will consider adding corporate or individual defendants based upon the evidence revealed during the litigation.

Consumers are strongly encouraged to visit http://www.safercar.gov/rs/takata/ or to contact their car dealer to determine whether their car is subject to a recall, to request required repairs, and to seek a replacement vehicle from the dealer until their airbag can be replaced or repaired.

The State of Hawaii is also being assisted in this action by the Honolulu law firm of Cronin Fried Sekiya Kekina & Fairbanks and the Washington, DC office of the law firm of Cohen Milstein.

Hawai’i’s complaint is attached and available at http://cca.hawaii.gov/ocp/files/2016/05/State-of-Hawaii-v.-Takata-Corporation-Complaint.pdf.

A Frequently Asked Questions (FAQ) regarding the recall is available at http://cca.hawaii.gov/ocp/takata-recall-faqs/.

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AP: Hawaii Sues Takata, Honda Over Exploding Air-Bag Inflaters

NYT: Hawaii Sues Takata, Alleging Cover-Up of Airbag Defect