Honda, Takata sued over exploding airbags

NEW YORK (CNNMoney)

The suit, filed in federal court Thursday, seeks class action status on behalf of the owners of all five million Hondas affected by the recall, alleging that they've suffered inconvenience and financial losses.

It contends that owners have been hurt by having limited use of their cars as well as a decline in the resale value of their vehicles. The suit also says car owners have been told they'll have to wait months before Honda and Takata have the replacement airbags needed to repair all the cars.

Related: Fix for airbags: Deadlier than the problem?

Finally, the suit alleges that Honda knew of the exploding airbag problem as early as 2001 but delayed recalling the cars.

The law firm which filed the suit, Hagens Berman, won more than $1 billion in a settlement from Toyota Motor (TM) for the decreased value of cars with an unintended acceleration problem. It is currently pursuing a similar case against General Motors (GM) on behalf of car owners with a faulty ignition switch tied to at least 30 deaths. The firm argues that case could have more than $10 billion in damages.

Related: Honda CEO cuts pay due to recalls

Spokesmen for both Honda and Takata declined to comment.

First Published: October 31, 2014: 10:19 AM ET

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