Derive Systems has agreed to a $300,000 civil penalty and estimates that it will spend about $6.25 million to address a federal complaint that it sold engine control devices designed to override the emissions control systems of vehicles in violation of the Clean Air Act.
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The automaker completed its three-year monitoring period in August, fulfilling obligations outlined in a $1.2 billion settlement with the federal government.
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The automaker was subject to the scrutiny of an independent monitor as part of a deferred-prosecution agreement arising from the unintended-acceleration scandal.
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The Japan-based air bag supplier is said to be in early discussions with the Justice Department to resolve allegations of criminal wrongdoing.
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Meanwhile, three automakers are expanding their passenger air bag recalls, and an eighth U.S. fatality has been tied to exploding air bag inflators.
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Appointee Bart M. Schwartz will review company safety recall practices as part of the automaker’s settlement with the U.S. Justice Department in September.
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The criminal case settlement with federal prosecutors requires payment of $900 million and the hiring of an independent monitor to oversee the company’s safety practices.
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The U.S. Justice Department has launched a criminal investigation of Takata Corp., the Japanese automotive safety equipment supplier whose defective air bag inflators have led to the recall of about 11 million vehicles in the U.S.
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The appointment, made by the U.S. Department of Justice, is part of Toyota's deferred prosecution agreement reached in March.
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A former Takata Corp. sales executive faces criminal charges that carry a maximum prison term of 10 years.
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