Takata Shares Jump On Settlement Announcement

(RTTNews) - Shares of Takata Corp. (TKTDF.PK) jumped as much as 20.25 percent in Tokyo trading after four global automakers agreed to pay $553 million to settle with owners of vehicles for losses linked to the recall of the company's products.

On the Tokyo Stock Exchange, Takata's shares are up 80.00 yen or 20.25 percent to 475.00 yen.

Documents filed on Thursday with a Miami federal court showed Toyota, Subaru, Mazda and BMW had reached a proposed settlement to compensate owners of 15.8 million vehicles for losses due to the recall of Takata's airbags.

The air bags have been linked to 11 deaths and some 180 injuries in the U.S. alone. Thursday's settlement doesn't cover personal-injury cases that are also part of the sprawling litigation against Takata and auto makers that is consolidated in the Florida court.

Other auto makers including Honda Motor Co., Ford Motor Co. and Nissan Motor Co. aren't part of the settlement, and still face lawsuits seeking recompense for financial losses.

In January Takata agreed to $1 billion in criminal penalties, including $975 million in restitution paid to carmakers who bought the airbags and consumers who were injured by them.