Automakers yesterday won a temporary reprieve from lawsuits filed by victims of defective air bags made by bankrupt Takata Corp that led to the largest-ever auto safety recall and at least 18 deaths, Reuters reported. The decision gives the Japanese auto supplier breathing room to work through its bankruptcy reorganization. Bankruptcy Judge Brendan Shannon in Wilmington, Delaware, granted a 90-day halt on lawsuits brought by Hawaii, New Mexico, the U.S. Virgin Islands as well as individuals. He did not extend the shield to 48 federal cases that extend across several districts, saying that the lawsuits had already advanced. Takata argued for a six-month freeze on hundreds of lawsuits so management could complete a $1.6 billion sale of its viable operations, crucial to its reorganization, and replace air bag inflators that are subject to the biggest recall in automotive history. Judge Shannon said that he was "extremely sensitive" to the plaintiffs' cases but believed a "breathing spell" for Takata was appropriate. The stay expires on Nov. 15.
