Blumenthal Urges Department of Justice to Conduct Swift, Sweeping Investigation into Kobe Steel; Demands DOT also Launch Investigation and Take Immediate Steps to Protect Travelers

[WASHINGTON, DC] – Today, U.S. Senator Richard Blumenthal (D-CT), a member of the Senate Judiciary Committee and the Senate Commerce, Science, and Transportation Committee, wrote to the Department of Justice (DOJ) and the Department of Transportation (DOT), urging both immediately investigate Kobe Steel in the wake of shocking revelations of deceptive practices including data falsification. The letters further ask DOJ to secure restitution for American companies and consumers affected, and for DOT to coordinate safety recalls as needed.

Japanese metals supplier Kobe Steel admitted last week to falsifying data and failing to perform mandatory quality checks for products dating back more than a decade. It is estimated that Kobe Steel provided substandard aluminum, copper, and steel to about 500 companies – including six automakers that have substantial sales and manufacturing footprints in the U.S. – leaving consumers unaware and unsuspecting of potential serious, life-threatening equipment defects.

In his letter to Attorney General Jeff Sessions, Blumenthal wrote, “The recent allegations against Kobe Steel clearly seem to fit a pattern of illegal business practices, and I am pleased that the Department has already initiated requests for information from Kobe Steel. I urge you to direct the Department to conduct a swift and thorough investigation into any civil or criminal wrongdoing by the company. The DOJ has a duty to protect American companies and their customers from such intentional and fraudulent deception.”

Today, Kobe Steel confirmed that the Department of Justice has sent the company requests for information regarding substandard products sold to U.S. customers.

“I urge you to also request information and launch an investigation so that your Department can evaluate whether Kobe Steel’s concealment has compromised our transportation systems,” wrote Blumenthal to Secretary of Transportation Elaine Chao. “The DOT has a duty to protect all passengers – whether traveling by car, air, or rail – from the safety consequences of such intentional and fraudulent deception.”

Blumenthal’s letter to Attorney General Sessions is available for download here. His letter to Secretary Chao is available for download here.