Takata Corp.’s bankrupt U.S. business will ask a federal judge today to suspend lawsuits against automakers that have been brought by people injured by its faulty air bag inflators, something that opponents say is an abuse of the law, Reuters reported. Takata and TK Holdings Inc., the company's U.S. unit, filed for bankruptcy in June and said that they faced tens of billions of dollars in liabilities from its inflators, which are subject to the biggest recall in automotive history. Bankruptcy automatically stayed hundreds of lawsuits against TK Holdings for wrongful death, injuries, economic loss and breach of consumer protection laws. But in July the company sought a preliminary injunction to suspend lawsuits against automakers that use its inflators. Without the injunction, Takata said the litigation would distract management from completing the sale of the company's viable operations to Key Safety Systems for $1.6 billion and could threaten the supply of air bag inflators to replace recalled ones. Plaintiffs' lawyers called the requested injunction "an abuse of the bankruptcy laws for the benefit of all of the world's largest automobile manufacturers." They said that Takata's request would delay consideration of plaintiff's lawsuits for six months or more, which would be a very long time for the plaintiffs. The official bankruptcy committee that represents injured drivers said in court papers the injunction would have "human consequences" and prevent people from pursuing compensation.
