Honda Admits Failure to Report Deaths

Honda admitted Monday that it failed to report more than 1,700 death and injury claims related to accidents involving its vehicles, which is a violation of federal law. According to a third-party auditor, Honda did not disclose 1,729 death and injury claims to federal officials for accidents occurring from July 1, 2003, through June 30, 2014. Honda claims computer errors and a misinterpretation of federal law are to blame, rather than a concerted coverup, but experts are skeptical. There is evidence a Honda employee recognized the claim entry failure in 2011 and that the company was made aware of its underreporting by 2012. However, “Honda began looking into the issue at that time, but did not take conclusive action,” said Honda Executive Vice President Rick Schostek. Honda could now face up to $35 million in federal fines for failing to report deaths in a timely manner. Honda has already recalled more than 5 million cars due to a type of defective air bags.