United States District Court, E.D. Michigan, Southern Division
18 U.S.C. § 1343
HONORABLE GEORGE CARAM STEEH UNITED STATES DISTRICT JUDGE.
COURT, upon consideration of the following:
Takata Corporation (“Takata” or “the
defendant”) has pleaded guilty and agreed that it will
owe restitution at sentencing;
defendant has agreed to pay restitution pursuant to 18 U.S.C.
§ 3663A, and restitution must be imposed for the full
amount of the victims' losses under 18 U.S.C. §
defendant has agreed to pay additional restitution in
accordance with the Plea Agreement, 18 U.S.C. §§
3663(a)(3), 3663A(a)(3); and
defendant does not presently have the ability to pay the full
amount of restitution, but will be able to do so upon its
sale to a third-party buyer;
HEREBY ORDER that:
defendant shall pay restitution pursuant to 18 U.S.C.
§§ 3663A(a)(1) and 3664(f)(1)(A) in the amount of
$481, 848, 850 to the victims of the defendant's fraud
scheme, to wit, those auto manufacturers who were defrauded
in connection with their purchase of Takata airbag systems
utilizing non-compliant ammonium nitrate-based inflators
(“the victim auto manufacturers”) based on the
provision of materially false, fraudulent, and misleading
documents, data, and information, or a failure to provide
material information. The defendant also shall pay additional
restitution pursuant to the Plea Agreement and 18 U.S.C.
§ 3663(a)(3) in the amount of $368, 151, 150 to all auto
manufacturers that purchased airbags with phase-stabilized
ammonium nitrate inflators from Takata or any of its
subsidiaries, regardless of location. The total amount of
restitution that shall be paid by the defendant to the auto
manufacturers is $850, 000, 000.
restitution of $850, 000, 000 allocated for the auto
manufacturers shall be paid by the defendant within five days
after the closing of the currently anticipated sale, merger,
acquisition, or combination involving a transfer of control
of the defendant, which must occur within 365 days after
entry of the plea in this case.
defendant shall pay additional restitution pursuant to the
Plea Agreement and 18 U.S.C. §§ 3663(a)(3) and
3663A(a)(3) in the amount of $125, 000, 000 to additional
individuals who suffered (or will suffer) personal injury
caused by the malfunction of a Takata airbag inflator, and
who have not already resolved their claims against the
restitution of $125, 000, 000 allocated for the
aforementioned individuals shall be paid by the defendant
within thirty days of entry of the plea in this case. Upon
the later of (a) five years after entry of the plea in this
case (the time currently estimated by the defendant for the
recall of its defective products to be completed), or (b) the
date upon which such recall is complete, any funds remaining
of the $125, 000, 000 in restitution monies provided for in
this paragraph shall be paid to the United States. However,
upon reaching either date, the Special Master may request a
reasonable extension in light of unresolved or anticipated
claims, as circumstances warrant.
Pursuant to 18 U.S.C. § 3664(d)(6), within thirty days
of this order the Court will appoint a Special Master to make
findings of fact and recommendations to this Court regarding:
(a) the individuals and entities entitled to restitution; and
(b) the restitution amounts to which these individuals and
entities are entitled.
Special Master shall be empowered to establish, oversee, and
administer two separate restitution funds-one for the auto
manufacturers (the “OEM Restitution Fund”) and
one for the individuals who suffered (or will suffer)
personal injury caused by the ...