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Takata sued in Canada for $1.9bn over air bags

Staff writer |
Three group lawsuits have been filed in Canada against Takata over its defective air bags that have led to millions of recalls worldwide.

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The plaintiffs sued Takata's U.S. subsidiary for a total of 2.4 billion Canadian dollars ($1.9 billion), arguing that the scandal over the air bags, which can explode and spew shrapnel at drivers and passengers, has decreased the value of their vehicles, Takata said.

"How they have calculated the compensation amount is unknown to us, so we will decide what action to take after carefully examining the complaints," a Takata investor relations official said.

The three lawsuits were filed at a superior court in the province of Ontario between November and December, Takata officials said. It was unclear how many people are or will be involved in lawsuits.

The plaintiff groups criticized the auto parts supplier for mishandling the issue, including its slow responses to calls for recalls and information disclosure.

Their compensation demands include not only their monetary losses but also punitive damages to hold Takata socially responsible.

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