Kia and Hyundai settle $200 million suit for owners with easy-to-steal cars
Rachel Schilke
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Owners of Hyundai and Kia vehicles determined to be easy to steal will receive compensation following an over $200 million class action lawsuit settled on Thursday.
The $200 million settlement covers owners of affected vehicles, which amounted to 9 million — 4.5 million Hyundais and 4.5 million Kias. Drivers can receive up to $6,125 for the loss of their vehicle, up to $3,375 for damage to their vehicle and personal property, and costs covering insurance-related expenses and related expenses such as transit and ride-share costs not covered by insurance.
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“The settlement will provide benefits as soon as possible to those who have suffered out-of-pocket losses due to car thefts in Hyundai and Kia cars without immobilizers,” said Steve Berman, managing partner at Hagens Berman and chairman of the lead committee representing affected vehicle owners in the lawsuit.
“Our goal in finalizing this settlement was to leave no one in the dark,” Berman added. “The owners of these cars have experienced enough upset, and we worked to achieve a settlement that covers many types of losses — from those who were lucky enough to have never had their theft-prone car stolen, to those whose stolen cars were totaled completely due to Hyundai and Kia’s negligence.”
The settlement will also reimburse vehicle owners who incurred towing costs and other fees and taxes related to replacement vehicles if the car was lost or stolen.
Owners are also eligible for software updates to prevent the vehicles from starting without having a key present. The settlement also allocates upgrades to fix the “lack of immobilizer.”
According to the lawsuit, design flaws in the Hyundais and Kias allowed thieves to steal them in less than 90 seconds. A lack of security in the steering columns also gives thieves easy access to the ignition cylinders for removal.
“Hyundai and Kia failed to sell cars equipped with fundamental anti-theft features, and that was not a victimless act,” Elizabeth Fegan of FeganScott law firm said. “We are pleased with the settlement reached and its immediate ability to hinder thieves, as well as compensate victims of thefts that have already occurred.”
States have also taken steps to prevent theft as motor vehicle theft continues to rise significantly throughout 2023 as homicides and violent crime decrease.
In New York, Mayor Eric Adams announced that the New York Police Department would begin giving out free Apple AirTags to people living in the Bronx neighborhoods of Castle Hill, Soundview, and Parkchester, where the NYPD has marked a 548% increase in stolen Kia and Hyundai models.
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Chief of Patrol John Chell said Hondas, Hyundais, and Kias are targets citywide due to their manufacturing defects. A growing trend on TikTok has contributed to the rise in grand theft auto, as well, with videos circulating teaching thieves how to steal a vehicle.
“Your greatest investment is your automobile. It’s used for many different reasons. It’s used to get to and from your place of employment, to drop your children off every day,” Adams said on May 1. “Using technology to fight crime, protect people, save property is a direction this administration and this Police Department is going in.”