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Product recalls are costing companies and insurers billions, and the numbers are expected to increase.

Takata's guilty plea accepted for deadly air bag fraud

Takata pleaded guilty to one count of wire fraud for misleading automakers about the safety of its exploding air bags, which have been linked to at least 17 deaths worldwide.

By Margaret Cronin Fisk, Steven Raphael | Updated on February 27, 2017
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Takata Corp.'s chief financial officer Yoichiro Nomura leaves federal court in Detroit, Monday, Feb. 27, 2017. Japanese auto parts maker Takata Corp. pleaded guilty to fraud Monday and agreed to pay $1 billion in penalties for concealing an air bag defect blamed for at least 16 deaths, most of them in the U.S. (AP Photo/Paul Sancya)

(Bloomberg) – Takata Corp. pleaded guilty to one count of wire fraud for misleading automakers about the safety of its exploding air bags, which have been linked to at least 17 deaths worldwide.

The Tokyo-based company entered its formal plea in Detroit federal court Monday, six weeks after reaching a $1 billion deal with the U.S. Justice Department. The Takata products have been the subject of the biggest product recall in history, expected to cover more than 100 million air bags.

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