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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.
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The Japan-based air bag supplier is said to be in early discussions with the Justice Department to resolve allegations of criminal wrongdoing.
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Meanwhile, three automakers are expanding their passenger air bag recalls, and an eighth U.S. fatality has been tied to exploding air bag inflators.
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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.
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