When it was discovered that Takata airbag inflators could explode and injure drivers and passengers, a recall was launched. However, no automotive recall of this magnitude had ever been attempted before. Around 125 million airbag inflators are affected, and they are installed in over 69 million cars. It is no wonder that this scandal has collapsed Takata Corp into bankruptcy, but will filing leave victims high and dry?

Who Will Be the Losers in the Takata Bankruptcy?

In most bankruptcies, the court sets up a single creditors’ committee to divvy up liability for the company that files, but the Takata Bankruptcy isn’t typical. So far, 17 people have allegedly lost their lives to these defective inflators and at least 180 people have been injured. There are also potentially millions of people who suffered a loss in the value of their vehicles due to these defective safety devices. These people’s interest may have been neglected by a single committee, and so the bankruptcy court in Maryland has setup two committees.

One committee is dedicated to Takata’s creditors, suppliers and vendors. The other committee is made up of representatives for injured drivers, passengers and families who lost loved ones due to potentially explosive inflators. This means that Takata recall victims will have a larger say as liabilities are investigated and distributed, and Takata must foot that bill.

The company has already purposed a fund that would compensate future injury claimants. If automakers chip into the fund, it could protect them from future victim lawsuits. However, determining what each fund contributor will put in is likely going to be the sticking point. Each contributor to the fund will be looking to limit their contribution and liability, but the consumer’s committee will have a big say in what will be a proper contribution.

For more information about the Takata bankruptcy and litigation, keep checking in with the safety lawyers here at Metier Law Firm—representing Colorado, Nebraska and Wyoming with comfort, safety and strength.