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.
The automaker completed its three-year monitoring period in August, fulfilling obligations outlined in a $1.2 billion settlement with the federal government.
The automaker was subject to the scrutiny of an independent monitor as part of a deferred-prosecution agreement arising from the unintended-acceleration scandal.
Auto safety parts supplier Takata Corp. pleads guilty to a wire fraud criminal charge and agrees to pay $1 billion to resolve a Justice Department probe into the company's sale of defective air bags and the associated coverup. Video courtesy of ABC Action News.
Three executives with the giant automotive supplier are also charged with wire fraud and conspiracy.
The Japan-based air bag supplier is said to be in early discussions with the Justice Department to resolve allegations of criminal wrongdoing.
Meanwhile, three automakers are expanding their passenger air bag recalls, and an eighth U.S. fatality has been tied to exploding air bag inflators.
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.
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.
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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