Next week, some Kia and Hyundai car owners affected by vehicle theft will receive notifications allowing them to claim a portion of a $145 million settlement. Hagens Berman, a Seattle-based law firm, announced that individuals who purchased or leased Kia or Hyundai models produced from 2011 to 2022 and experienced vehicle theft will be notified by or on March 4.
The class action lawsuit revolves around allegations that Korean automakers Kia America and Hyundai Motor America left their vehicles more vulnerable to theft by failing to equip them with immobilizers. This omission, according to Hagens Berman, made the affected models easier targets for theft.
Kia expressed satisfaction with the settlement, stating that it would provide affected customers with additional benefits. Meanwhile, Hyundai emphasized its commitment to supporting customers and communities affected by vehicle thefts involving specific model years from 2011 to 2022. The lawsuit is expected to cover around 9 million affected vehicles, according to a May 2023 news release from the law firm.
Eligible car owners will have to wait for their payments after submitting their claims, as the court must grant final approval of the revised $145 million settlement fund. The final approval hearing is scheduled for July 15, 2024. Once final approval is granted, settlement payments will be distributed to claimants, although any appeals could further delay the process.
Funds from the settlement will be allocated towards covering class members’ out-of-pocket expenses related to vehicle thefts that were not covered by insurance. The deadline to submit a claim is January 11, 2025. Additionally, software upgrades will be provided to class members who own certain vehicles to address the absence of immobilizers.
The Angeion Group, an independent settlement administration company, will handle the identification and notification of class members. Vehicle owners can check whether their vehicles are included in the settlement on the Kia and Hyundai settlement websites.
An immobilizer is an antitheft device commonly installed in modern cars, preventing them from being started without the proper code. The absence of immobilizers in Kia and Hyundai vehicles made them susceptible to theft, leading to the class action lawsuit.
The “Kia Challenge” TikTok trend shed light on the vulnerability of Kia and Hyundai vehicles to theft. Videos demonstrating how to start these vehicles with a screwdriver and USB charging cord prompted the class action lawsuit and a subsequent suit filed by New York City against the automakers.
Kia and Hyundai have taken steps to address the issue, with Kia distributing free steering wheel locks to over 340,000 owners of impacted vehicles and providing software upgrades to eligible customers. Additionally, both automakers developed an ignition cylinder protector to reinforce the ignition cylinder body and deter theft.
To expedite anti-theft hardware installations, Hyundai launched multi-day mobile pop-up software installation clinics in several cities across the United States. These efforts aim to enhance vehicle security and prevent future thefts of Kia and Hyundai vehicles.