2017.02.2801:12:00UTC+00Takata pleads guilty, to settle airbag lawsuit in $1 billion deal

Takata Corp. admitted to a count of wire fraud and struck a settlement to allocate $1 billion for paying fines for hiding the risks of using its airbag inflators that have killed at least 17 people worldwide.

On Monday, the Japanese firm lodged its formal plea in Detroit federal court. It comes following the manufacturer sealed a deal with the Justice Department.

Takata said it hid the dangers of using its perils airbags for around 15 years. It also agreed to allocate $25 million in charges as well as set aside $125 million for compensating victims and $850 million for reimbursing carmakers for recall expenditures.

Under the settlement, Takata will enter a three-year probation period and an independent compliance watchdog will monitor the company.

Takata spokesperson Jared Levy refused to give a comment on the verdict, referring to their official statement when the agreement was revealed last month.