Hyundai Motor America and Kia America Resolve Consumer Litigation in Response to Vehicle Thefts
- Automakers to Provide Compensation for Customers who Incurred Theft-related Vehicle Losses or Damage Not Covered By Insurance, Increased Insurance Premiums and Other Insurance Costs
- Agreement Includes Reimbursement for Anti-Theft Devices, Including Steering Wheel Locks and Alarm Kits
"We appreciate the opportunity to provide additional support for our owners who have been impacted by increasing and persistent criminal activity targeting our vehicles," said Jason Erb, chief legal officer, Hyundai Motor North America. "Customer security remains a top priority, and we're committed to continuing software upgrade installations and steering wheel lock distribution to help prevent thefts and offering insurance options through AAA for those who have had difficulty securing and sustaining coverage."
"Kia is very pleased that today's announcement will allow customers who have been impacted by vehicle thefts to receive additional benefits," said John Yoon, chief legal officer, Kia America, Inc. "This agreement is the latest step in a series of important actions, in addition to providing a free security software upgrade and distributing over 65,000 steering wheel locks, that Kia has taken to help customers whose vehicles have been targeted by criminals using methods of theft popularized on social media. Kia remains committed to assisting our customers and upholding vehicle security."
As part of this settlement, the software upgrade will be automatically installed in conjunction with any service or maintenance appointment that brings the owner of an eligible vehicle into the dealership.
For the subset of customers whose vehicles cannot accommodate the software upgrade, the agreement will provide reimbursement up to
The settlement includes approximately 9 million Hyundai and Kia vehicles.
Hyundai | Kia |
2011-2022 Accent 2011-2022 Elantra 2013-2017 Elantra GT 2013-2014 Elantra Coupe 2011-2012 Elantra Touring 2011-2014 Genesis Coupe 2018-2022 Kona 2020-2021 Palisade 2011-2012, 2019-2022 2013-2018, 2019 Santa Fe; Santa Fe XL 2013-2018 Santa Fe Sport 2011-2019 Sonata 2011-2022 2012-2017, 2019-2021 Veloster 2020-2021 Venue 2011-2012 | 2011-2021 Forte 2021-2022 K5 2011-2020 Optima 2011-2021 Rio 2011-2021 Sedona 2021-2022 Seltos 2010-2022 Soul 2011-2022 Sorento 2011-2022 Sportage |
The Court is expected to review the proposed settlement of the matter (In re: Kia Hyundai Vehicle Theft Marketing, Sales Practices, and Products Liab. Litig., Case No. 8:22-ML-3052 JVS(KESx) (C.D. Cal.) for preliminary approval in July. Notices will be sent to individual class members following final approval and pursuant to the terms of the settlement.
Background
Following historically low rates of theft among Hyundai and Kia vehicles, thefts spiked in the summer of 2022 in response to videos posted by car thieves on TikTok and other social media channels in what became known as the "Kia Challenge." In these videos, thieves documented and promoted a specific method by which to bypass the vehicles' security features, dismantle their steering columns and create direct access to their ignitions and challenged others to copycat their crimes. Hyundai and Kia have urged TikTok and others to have the illicit content removed in accordance with the platforms' terms of service and community standards.
Approximately 9 million 2011-2022 model year Hyundai and Kia vehicles on the road in the
Earlier this year, Hyundai and Kia introduced a free anti-theft software upgrade for affected customers. To date, Kia has notified over three million owners and lessees of these vehicle models—covering over
The free anti-theft software upgrade modifies certain vehicle control modules on Hyundai and Kia vehicles equipped with standard "turn-key-to-start" ignition systems to include an "ignition kill" feature so the vehicles cannot be started when subjected to the method of theft popularized on TikTok and other social media channels. All Hyundai and Kia vehicles produced since November 2021 are equipped with an engine immobilizer as standard equipment.
Hyundai Motor America
Hyundai Motor America focuses on 'Progress for Humanity' and smart mobility solutions. Hyundai offers
Kia America, Inc.
Headquartered in
* The K5, Sportage, Sorento, and Telluride (excludes HEV and PHEV models) are assembled in
Plaintiffs:
Plaintiffs are represented by the law firms of Hagens Berman Sobol Shapiro LLP, Baron & Budd P.C., Fegan Scott LLC and Humphrey, Farringon & McClain P.C.
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SOURCE Hyundai Motor America