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Air-bag settlement deals keep details from crash victims

Confidential settlements over defective Takata Corp. air bags are sealing off relevant information that other victims could use to pursue injury claims.

By Jeff Green, Bloomberg | Updated on November 17, 2014
Honda Motor Co. is dealing with fallout from its use of defective Takata Corp. air bags in some of its vehicles.
(Bloomberg) — Confidential settlements over defective Takata Corp. air bags are sealing off relevant information that other victims could use to pursue injury claims.

The accords make financial sense for the settling parties, but Takata and other defendants, including Honda Motor Co., General Motors Co. and Fiat Chrysler Automobiles NV, get an extra advantage in keeping damaging information out the hands of outsiders interested in suing them. The quick, secret deals — a cornerstone of product liability litigation across industries — help explain why years after the first recalls so much remains unknown about defects linked to four U.S. deaths. The few cases filed have generally been resolved before victims’ lawyers acquired evidence.

Five of a dozen lawsuits reviewed by Bloomberg News were settled before information could be revealed in courts. One of the cases is being reviewed for a possible settlement, while one is in mediation and another was dropped. None has gone to trial.

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