Ex-FBI director chosen to head Takata air bag claim fund

DETROIT -- A federal court judge plans to appoint former FBI Director Robert Mueller III to oversee the disbursement of nearly $1 billion in restitution in the deadly Takata air bag case, which involves the largest recall in U.S. history.

U.S. District Judge George Steeh issued an order this afternoon from the Detroit-based court signaling his intent to appoint Mueller, who headed the FBI during the Sept. 11, 2001, terrorist attacks,  as special master in the high-profile case.

In his order, Steeh noted Mueller's qualifications, specifically his role as settlement master in the Volkswagen diesel emissions case. Also under consideration was Kenneth Feinberg, who oversaw compensation for 9/11 victims and the General Motors ignition switch scandal.

Steeh picked Mueller over Feinberg, even though some of the parties in the case initially backed Feinberg.

"In the end, the court determines that Mr. Mueller is the best candidate for the position, based in part on the parties’ support of his appointment, as well as the court’s comfort and trust in his impeccable credentials, his relevant experience in settlement negotiations, his familiarity with the automotive industry in general, and based upon his well-known reputation for integrity," Steeh said in his order.

Mueller will be in charge of recommending to the court which individuals and entities should receive restitution and the restitution amounts.

He is a partner in the Washington, D.C., law firm of WilmerHale. He was appointed as the sixth director of the FBI during the administration of former President George W. Bush one week before the terrorist attacks.

Takata, which is based in Tokyo but has its U.S. headquarters in Auburn Hills, is one of the world's largest automotive suppliers. It pleaded guilty in February in federal court in Detroit to fraud charges as part of the almost $1-billion settlement agreement with the U.S. government. At least 16 people have died around the world as a result of the air bag defects.

Yoichiro Nomura, Takata's chief financial officer, expressed the company's "deep regret" the day of the guilty plea, admitting that employees knew of problems with the air bags for more than a decade and manipulated testing data.

The defects — inflators can explode with too much force, spraying shrapnel onto drivers and passengers — have resulted in the National Highway Traffic Safety Administration's largest-ever recall. The recall covers more than 42 million vehicles with a total of 69 million inflators sold in cars made by more than 12 automakers.

"The conduct leading to today's plea was completely unacceptable," Nomura said Feb. 27. "I would like to sincerely apologize on behalf of Takata. The actions of certain Takata employees to undermine the integrity of the company's testing data and reporting to customers were deeply inappropriate."

As part of its plea, Takata agreed to pay a $25-million criminal fine and $975 million in restitution. It's believed the company will be acquired eventually by Sterling Heights-based Key Safety Systems.