November 4, 2015
Senior advisor Lee Terry was featured in the Law360 article “NHTSA Boosts Authority With Heavy Hand In Takata Settlement.” The article covers the National Highway Traffic Safety Administration’s (NHTSA) record $200 million settlement with Takata over its exploding air bag inflators. Attorneys note that the settlement gives the agency an unusual level of control over the beleaguered Japanese auto parts maker's regular operations. They also believe that Takata's agreement to the deal was likely spurred by fears of worse penalties or potential criminal action. Mr. Terry noted that, "A lot of times, the DOJ in the past has not gone forward on criminal actions when there have been hefty fines." He also commented on the NHTSA’s use of the Transportation Recall Enhancement Accountability (TREAD) act. "Takata was more aggressive than others typically in hiding information from NHTSA, and the TREAD Act was specifically developed because of auto and equipment manufacturers who didn't give information that was required," he said.
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