Hyundai and Kia have agreed to pay up to about $200 million combined to settle a class-action lawsuit over a manufacturing defect that made it so easy to steal certain vehicles that teenagers were challenging each other to do it on social media.
Both companies, as well as attorneys for the plaintiffs, said Thursday that they had agreed on the proposed settlement amount, which still must be approved by the court. In a joint statement, the car manufacturers said the proposed agreement “could be valued at approximately $200 million depending on how many customers elect to participate.”
“We believe this settlement offers comprehensive, welcome relief for the class that will serve as a lesson to automakers to not overlook such integral, basic safety features,” Roland Tellis, an attorney for the plaintiffs, said in a statement.
Kia and Hyundai failed to equip certain models manufactured from 2011 to 2022 with immobilizers, an anti-theft device that prevents cars from being started unless it receives a signal from the correct key, according to the lawsuit, which was litigated in federal court in the Southern District of California. The lack of immobilizers enabled would-be car thieves to steal the vehicles in less than a minute, while tutorials spread on social media.
Such thefts have taken place around the United States, with an estimated 9 million vehicles affected – half of them Kias and the other half Hyundais, according to the plaintiffs attorneys.
Owners of affected models whose vehicles were stolen can claim up to $6,125 for out-of-pocket costs, and those who still have their vehicles but suffered damage to them can claim $3,375, according to the plaintiffs’ attorneys. The settlement would also reimburse for towing costs and fees and taxes associated with replacement vehicles. The manufacturers also will provide a free software upgrade designed to prevent the vehicles from starting unless their key is present. Those with models that are not eligible for a software upgrade are eligible for a reimbursement of $300.
The manufacturers’ statement lists the affected vehicles.
“We appreciate the opportunity to provide additional support for our owners who have been impacted by increasing and persistent criminal activity targeting our vehicles,” Jason Erb, chief legal officer at Hyundai Motor North America, said in a statement.
Source: Matzav/(c) 2023, The Washington Post · Julian Mark
