Owners of affected vehicles can now confirm their inclusion in the settlement class and submit a claim at the settlement website.
Hyundai Settlement Site » Kia Settlement Site »Please note that you cannot make a settlement claim through Hagens Berman or our firm website. All settlement claims must go through the settlement website, by mail or by email to the settlement administrator.
07/16/24 | Case Update
On July 15, 2024, the court held a fairness hearing regarding final approval of the class-action settlement. The court issued a tentative order prior to the hearing in which it overruled all objections to the settlement, but did express concern about the release of claims for diminution in value. Next, class counsel will submit a report on that subject showing that the models have retained value compared to comparable cars. The lone objector who raised this point submitted no evidence of diminution in value. We are confident once Judge Selna receives the information, he will grant final approval. A final approval hearing has been rescheduled for Sept. 30, 2024.
Unlike most vehicles, the Hyundai and Kia models affected by this security defect are not equipped with an immobilizer, leaving them vulnerable to theft, and often leaving owners with repair bills in excess of $10,000. The security vulnerability allows thieves to steal vehicles by simply opening the steering column and using a common USB charging cord or similar metal object to start the engine. Videos soon went viral online showing the simple security flaw, dubbed the “Kia Challenge.” We believe consumers who purchased affected Hyundai and Kia cars deserve better, and the automakers responsible failed to adequately protect against basic theft in order to cut costs.
The proposed Settlement includes the following Hyundai and Kia vehicles that were manufactured without an engine immobilizer and distributed for sale in the United States (including Puerto Rico, Virgin Islands, and Guam):
Hyundai and Kia chose to manufacture and sell the affected vehicles without an immobilizer, a device which prevents most vehicles from being started unless a code is transmitted from the vehicle’s smart key. Viral videos on TikTok and YouTube give step-by-step instructions on how to steal the affected vehicles without a key, and reports of stolen Kia and Hyundai vehicles have skyrocketed across the country. In fact, the “Kia Challenge,” widely shared on social media platforms, dares people to break in and then use a USB cord to start the cars.
By failing to install immobilizers in the affected vehicles – commonly equipped devices in modern cars – Hyundai and Kia knowingly left these affected vehicles prone to being stolen. The European Union has required immobilizers as a standard feature for all new vehicles since 1998, yet Hyundai and Kia have chosen to omit immobilizers in millions of vehicles in the U.S., despite deploying them in vehicles sold in countries with immobilizer requirements.
News outlets have reported a sharp increase in vehicle thefts specifically affecting Hyundai and Kia models since 2020. Recent reports in Milwaukee, WI state that auto theft has increased more than 200% year-over-year, with Hyundai and Kia vehicles comprising two-thirds of those stolen. Viral videos of the “Kia Challenge” show teens and young adults going for joy rides and in some cases, even abandoning or crashing the cars. The incidents have turned dangerous, with suspects and bystanders being seriously injured or killed following unsafe driving and crashes related to the thefts. Because cars taken on joy rides often experience further damage, the owner’s total cost to repair their vehicle often exceed $10,000.
We believe Hyundai and Kia chose to sell the affected vehicles without immobilizers to cut costs. By failing to ensure their vehicles had adequate theft protection and security, Hyundai and Kia have essentially rendered vehicle owners vulnerable to the simplest of crimes. Despite public outcry, rising rates of Hyundai and Kia vehicle thefts and municipalities’ requests, the automakers have failed to remedy this issue based on their own design flaw, defect and manufacturing choices. Hagens Berman believes vehicle owners deserve to be safe, and these automakers should be held accountable for putting drivers at risk for increased likelihood and rates of theft.
Hagens Berman is one of the most successful auto litigation law firms in the U.S. and is presently leading nationwide cases against Hyundai & Kia, Volkswagen, GM and other automakers for safety defects and emissions-cheating claims. The firm recently secured a $1.3 billion settlement for owners of Hyundai and Kia vehicles equipped with the Theta II GDI engine, which were subject to engine fire hazard and total engine failure. Hagen’s Berman has secured more than $325 billion in total settlements, $20 billion of which relates to automotive class actions. Your claim will be handled by attorneys experienced in automotive consumer law.