In 2024, Kia and Hyundai faced a significant legal challenge with a class action lawsuit due to issues related to car theft. This lawsuit has resulted in a substantial settlement, which includes payments to affected car owners. This article will provide a detailed overview of the lawsuit, the settlement amount, payment dates, eligibility criteria, and what you need to know if you’re a Kia or Hyundai owner.
Kia-Hyundai Class Action Lawsuit 2024
Kia and Hyundai, both part of the Hyundai Motor Group from South Korea, are in the spotlight due to a lawsuit filed by New York City. The lawsuit addresses a widespread issue where certain models of Kia and Hyundai vehicles were highly susceptible to theft. This problem became well-known through social media, where videos showed how to start these cars using simple tools like screwdrivers and USB cables.
The crux of the issue is that many of these cars lacked engine immobilizers, a security feature present in most vehicles since the 1990s. An engine immobilizer prevents a car from starting unless the correct key is used. This security flaw made the vehicles easy targets for thieves.
Kia-Hyundai Class Action Lawsuit Settlement $3375
The lawsuit has led to a settlement where Kia and Hyundai have agreed to pay a total of $200 million. This settlement is meant to compensate customers affected by the lack of engine immobilizers in their vehicles. The compensation amounts to $3,375 or 33% of the value of damages to the vehicle or personal property lost due to theft, whichever is greater.
The company has stopped producing cars with key ignitions and has been using push-button starters since 2021. This change aims to prevent similar theft issues in the future. However, for vehicles already affected, the settlement will help cover damages and losses.
Settlement Amount Table
| Settlement Type | Compensation Amount |
|---|---|
| For damages to vehicle or personal property | Up to $3,375 or 33% of the value, whichever is greater |
| For insurance deductibles or theft coverage premiums | Up to $375 |
| For installation of theft protection devices | Up to $250 per vehicle |
Kia-Hyundai Settlement Payment Dates
The exact payment dates for the Kia-Hyundai settlement are not yet confirmed. However, Kia and Hyundai have announced plans to launch a software upgrade for approximately 8.3 million cars lacking theft protection immobilizers. This software update aims to reduce the incidence of theft that became popular on social media platforms.
As of now, customers who qualify for the settlement will be notified about their payment schedules once the court gives final approval to the agreement.
Kia-Hyundai Class Action Lawsuit Eligibility
To be eligible for the settlement, you must have purchased one of the following Kia or Hyundai models in the US:
Eligible Models Table
| Year | Car Model |
|---|---|
| 2011-2021 | Kia Forte |
| 2021-2022 | Kia K5 |
| 2011-2020 | Kia Optima |
| 2012-2021 | Kia Rio |
| 2011-2021 | Kia Sedona |
| 2021-2022 | Kia Seltos |
| 2011-2022 | Kia Sorento |
| 2020-2022 | Kia Soul |
| 2011-2022 | Kia Sportage |
If you have already received a steering wheel lock from the company, you may be eligible for $250 for purchasing and installing theft protection devices, such as glass breakage alarms.
All We Know
The settlement offers two types of compensation: a software upgrade and monetary payments. Not everyone will receive the software upgrade. Those who experienced theft or attempted theft can claim up to $375 for insurance deductibles or enhanced premiums. Additionally, there is compensation of up to $250 for installing theft protection devices.
Owners of the eligible Kia models in the U.S. and its territories, including Puerto Rico, Guam, and the U.S. Virgin Islands, can make a claim. However, some states and regions may not qualify for the software upgrade but can still receive monetary compensation from the fund.
Conclusion
The Kia-Hyundai class action lawsuit highlights significant issues related to vehicle security and consumer rights. With a settlement amount of $3,375, Kia and Hyundai are addressing the security concerns of their customers. If you own one of the affected models, it’s essential to stay updated on the settlement’s progress and ensure you meet the eligibility requirements to receive compensation. The settlement aims to help those impacted by the car theft problem and improve security measures for the future.
FAQ’s
What is the Kia-Hyundai class action lawsuit about?
The lawsuit addresses car theft issues with Kia and Hyundai vehicles due to a lack of engine immobilizers, a security feature that prevents unauthorized starting of the car. This flaw made certain models highly susceptible to theft.
How much can I receive from the Kia-Hyundai settlement?
Eligible individuals can receive up to $3,375 or 33% of the value of damages to their vehicle or personal property. Additionally, compensation of up to $375 is available for insurance deductibles and up to $250 for installing theft protection devices.
When will the settlement payments be issued?
The exact payment dates are not yet confirmed. The settlement will be finalized once the court approves the agreement. Kia and Hyundai will then notify eligible customers about their payment schedules.