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Auto Safety

This archive displays posts tagged as relevant to auto safety and the Auto Safety Whistleblower Reward Program. You may also be interested in the following pages:

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February 12, 2020

General Motors (GM) has agreed to a $5.75 million settlement with the State of California to resolve allegations of making false and misleading statements to investors, including the state’s largest pension system, California Public Employees’ Retirement System (CalPERS).  According to Attorney General Xavier Becerra, GM cheated California twice—first by failing to disclose a faulty ignition-switch issue to the National Highway and Traffic Safety Administration (NHTSA) that it had been aware of for almost ten years, and which ultimately led to 124 fatalities and 274 injuries, and second by concealing the problem from investors and failing to build reserves for losses it knew was coming.  The company’s actions artificially inflated its stock price, causing CalPERS to lose millions of dollars.  CA AG

Top Ten State Healthcare and Financial Fraud Recoveries of 2020

Posted  01/8/21
person raising the U.S. flag
State and local governments are on the front lines of enforcing anti-fraud laws and play a critical role in ensuring that businesses and individuals are held accountable.  Whistleblowers with information about corporate misconduct involving healthcare, government procurement, financial regulation, and tax may find that state proceedings offer them the best option. More than 30 states have False Claims Acts that...

August 25, 2020

American Honda Motor Co., and Honda of America Mfg., Inc. (Honda) has reached a settlement with the Attorney Generals of 48 states and agreed to pay $85.1 million to resolve allegations of failing to disclose certain airbag safety failures to regulators and ­­­customers of Honda and Acura vehicles sold in the United States.  According to the complaint, Honda engineers were aware that the propellant used in Takata-manufactured airbags—used in Honda and Acura vehicles since 2001—could burn aggressively, cause the inflator to burst, and ultimately harm drivers and passengers, yet continued to represent that its cars were safe even as it began recalling affected vehicles in 2008.  Although the company eventually recalled approximately 12.9 million vehicles, the recalls came too late and the failures resulted in at least 14 deaths and over 200 injuries nationwide.  AG CA; AG FL; AG NY; AG GA

How to Be a Whistleblower

Posted  07/19/19
By Jessica T. Moore
How to be a whistleblower
You know about fraud, waste, abuse, or corruption by an individual or a company. Someone is getting by with cheating -- taking money from the government, taxpayers, or investors, or even harming others, such as patients. You are deeply troubled about it and want the proper authorities to stop it. You are worried whether you will be heard, taken seriously, and protected. You wonder if your information fits within a...

Two Constantine Cannon Clients Featured on 60-Minutes Australia

Posted  11/1/18
Two Constantine Cannon clients who blew the whistle on Takata’s exploding airbags, the largest corporate cover-up in the auto industry, were featured on 60-Minutes Australia. The show revealed how Takata made these low-cost airbags to get a jump on competitors, ultimately putting millions of lives at risk and resulting in hundreds of deaths and injuries. Valuing profits over public safety, Takata ignored the...

Takata - Auto Safety ($1 billion)

Two former Takata employees, Mark Lillie and another man who chose to remain anonymous, provided extensive assistance to the U.S. government in its criminal case against Takata, the maker of defective airbags which exploded and claimed the lives of 22 people and set off a worldwide recall of nearly 100 million airbag inflators.  In January 2017, Takata pled guilty to wire fraud and agreed to pay $1 billion in criminal penalties stemming from the company’s fraudulent conduct in relation to sales of defective airbag inflators. The criminal action also resulted in three high-level Takata executives pleading guilty to wire fraud and conspiracy charges. The awards to the whistleblowers were the first ever made under the Motor Vehicle Safety Whistleblower Act, a federal whistleblower-reward program.  Read more here.

Constantine Cannon Announces Whistleblower Award in Takata Airbag Crisis Settlement

Posted  03/28/18
Constantine Cannon LLP announced yesterday that two of its whistleblower clients will receive more than $1.13 million to settle their claims for whistleblower awards for information they provided to the U.S. government in its criminal case against Takata, the now-bankrupt maker of defective airbags which exploded and claimed the lives of 22 people and set off a worldwide recall of nearly 100 million airbag...

October 19, 2017

California announced a $120 million multistate settlement with General Motors Company (GM) over allegations that the company concealed safety issues related to defective ignition switches in GM vehicles. California will be receiving over $7 million. The settlement, reached among the attorneys general of 49 states and the District of Columbia and GM, concludes a multistate investigation into the auto manufacturer’s failure to disclose in a timely manner known safety defects associated with unintended key-rotation and/or ignition-switch related issues in several models and model years of GM vehicles. CA

South Korea Orders Major Hyundai, Kia Recall After Whistleblower Report

Posted  05/12/17
By the C|C Whistleblower Lawyer Team In the first whistleblower case to hit South Korea's auto industry, Kim Gwang-ho, a Hyundai engineer with 26 years at the company, made allegations about 32 problems to local regulators.  In response, South Korea ordered Hyundai Motor Co and affiliate Kia Motors Corp to recall 240,000 vehicles over safety defects flagged by a whistleblower - a sharp slap on the wrist that will...

February 27, 2017

Tokyo-based Takata Corporation pleaded guilty and was sentenced to pay a total of $1 billion in criminal penalties stemming from the company’s conduct in relation to sales of defective airbag inflators.  According to admissions made during the course of the guilty plea, Takata carried out a scheme to defraud its customers and auto manufacturers by providing false and manipulated airbag inflator test data that made the performance of the company’s airbag inflators appear better than it actually was.  Even after the inflators began to experience repeated problems in the field, Takata executives continued to withhold the true and accurate inflator test information and data from their customers. DOJ
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