Kia, Hyundai Drivers Seek $200 Million Deal Approval Over Thefts

Kia and Hyundai drivers plan to seek a federal judge’s approval by July for a class settlement valued at more than $200 million that will resolve allegations that insufficient security features led to a rash of thefts spurred on by social media challenges.

Drivers asserted consumer deception and other claims, alleging they overpaid for certain 2011–2022 Kia and Hyundai models equipped with traditional “insert-and-turn” steel key ignition systems because the lack of an engine immobilizer made them easy to steal. An immobilizer is an electronic security device that makes it more difficult to start a vehicle without the appropriate key.

The “Kia Challenge,” widely shared on social media platforms like TikTok, dares people to break into cars and then use a USB cord to start the engines, they said.

Lawsuits against Kia America Inc. and Hyundai Motor America were combined before Judge James V. Selna of the US District Court for the Central District of California late last year.

The deal applies to some 9 million Hyundai and Kia vehicles and could be worth $200 million depending on how many customers elect to participate.

The settlement provides up to $145 million for out-of-pocket losses, plaintiffs’ attorneys said. Plaintiffs are eligible for up to $6,125 for total loss of a vehicle, and up to $3,375 for damage to vehicles and personal property. The deal also provides reimbursement for theft-related expenses such as car rental and transportation costs.

Owners of affected vehicles are also eligible for a software upgrade meant to address the cars’ lack of an immobilizer. The software is designed to prevent the vehicles from starting without the key being present.

Plaintiffs expect to ask for Selna’s preliminary approval by July 10, a Thursday filing said.

A group of 17 states and the District of Columbia recently called for a federal recall of Hyundai and Kia vehicles because of the theft rate.

Hagens Berman Sobol Shapiro LLP; Baron & Budd PC; FeganScott; and Humphrey, Farrington & McClain PC represent the plaintiffs. Jenner & Block LLP represents Kia and Hyundai.

The case is In re Kia, Hyundai Vehicle Theft Litig., C.D. Cal., No. 8:22-ml-03052, stipulation 5/18/23.