Judge Preliminarily Approves $200 Million Settlement To Hyundai And Kia Owners

A judge in the U.S. has granted preliminary approval of a settlement that will provide up to $200 million or more in relief for owners and those leasing 2011-2022 Hyundai or Kia models that lack immobilizers.

Lawyers from the two car manufacturers and those representing American vehicle owners have been attempting to finalize a deal since earlier this year. The preliminary approval of the settlement by The Honorable James V. Selna of the U.S. District Court for the Central District of California will resolve the claims brought against Hyundai and Kia in a class-action lawsuit filed on August 18, 2022.

Attorneys at Hagens Berman who represent owners have revealed that class members who had their Hyundai or Kia vehicle stolen will be eligible for up to 60% of the Black Book value of their vehicle, including licensing fees, sales tax paid, registration fees, and other expenses. Owners of vehicles that were damaged in an attempted theft and those who had personal property stolen will be reimbursed up to 33% of the Black Book value of their vehicle or $3,375 per claim, whichever is greater. A judge initially rejected the settlement in August.

An economic expert for the plaintiffs who was cited in the settlement agreement says that most class members are "likely to receive near full compensation."

"These key changes to the settlement agreement mean more people impacted by this defect will get the money they are justly owed," added Hagens Berman attorneys. "Now that we have preliminary approval from the court, we may soon proceed to notifying class members and distributing funds through the settlement administrator."

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Class members will be sent a notice of the settlement by March 4, 2024, and can file claims during the settlement period. If the court approves the settlement on July 15, 2024, payments will begin.

The massive settlement comes in response to a massive uptick in Hyundai and Kia thefts impacting approximately 9 million vehicles produced without a push-button ignition or an immobilizer. These vehicles can be stolen in less than 90 seconds with a USB charging cable or a similar-shaped metal object that is used to turn the ignition.