— A Hyundai and Kia theft settlement has received final approval after dozens of Hyundai and Kia theft class action lawsuits were filed in 2021 after teens began stealing vehicles in the so-called “Kia Challenge.”
Teenage criminals broke car windows, ripped open steering columns, removed ignition locks and used standard USB cables to start vehicles. Criminals record their crimes and post the videos online, “challenging” others to do the same.
Lawsuit alleges Hyundai and Kia did not equip vehicles built from 2011 to 2022 with engine immobilizers, which are not required in the U.S.
The National Highway Traffic Safety Administration investigated the vehicles and determined there were no defects or issues with the vehicles.
Federal safety investigators found the thefts were caused by teenage criminals damaging and stealing vehicles, while the cities where the teenagers lived blamed Hyundai and Kia for “security deficiencies.”
As consumer class-action lawsuits swell, the automakers say they will consolidate the lawsuits and settle them in an effort to end costly and time-consuming litigation. However, Hyundai and Kia deny all accusations and say teenage criminals are responsible for the thefts and resulting problems.
Hyundai Kia theft case settled
The final version of the theft settlement includes software updates and compensation options. The settlement emphasizes that software updates will not prevent vehicles from being stolen.
“Software upgrades do not guarantee that any vehicle will be free from theft or attempted theft.” — Hyundai Kia theft case settled
Many Hyundai and Kia owners contacted the courts to object to the terms of the settlement. Overall, these opponents argue that the $80 million to $145 million settlement fund will mean nothing to the owners of approximately 9 million vehicles.
The judge dismissed owners who objected to the settlement, and some Hyundai and Kia drivers complained the settlement should be worth no less than $1 billion.
Additionally, Hyundai and Kia had offered several free “benefits” of the theft settlement long before the settlement was reached.
Modern anti-theft vehicle
2011-2022 Hyundai Accent
2011-2022 Hyundai Elantra
2013-2020 Hyundai Elantra GT
2013-2014 Hyundai Elantra Coupe
2011-2012 Hyundai Elantra Wagon
2011-2014 Hyundai Genesis Coupe
2018-2022 Hyundai Kona
2020-2021 Hyundai Palisade
2011-2022 Hyundai Santa Fe
2019 Hyundai Santa Fe XL
2013-2018 Hyundai Santa Fe Sport
2011-2019 Hyundai Sonata
2011-2022 Hyundai Tucson
2012-2017, 2019-2021 Hyundai Veloster
2020-2021 Modern Venue
2011-2012 Hyundai Veracruz
Kia anti-theft vehicle
2011-2021 Kia Forte
2021-2022 Become K5
2011-2020 Kia Optima
2011-2021 Kia Rio
2011-2021 Kia Sedona
2021-2022 Kia Seltos
2011-2022 Kia Soul
2011-2022 Kia Sorento
2011-2022 Kia Sportage
Anti-theft settlement software upgrade (eligible vehicles)
Hyundai and Kia provided these free updates long before the settlement was reached, although the theft class action settlement said it was a “benefit” of the settlement.
The software upgrade is simply to prevent key fob-locked vehicles from being started without a key “through a theft method popular on TikTok and other social media channels.”
This means that the software update will prevent the vehicle from being started via the USB cable after the steering column is removed. However, criminals can still break windows, damage the steering column and remove the ignition lock, all of which are necessary before a USB cable can be used in a locked car.
Anti-theft settlement software upgrade (replacement vehicle)
Certain Hyundai and Kia vehicles were unable to receive software upgrades, and the settlement refers to these vehicles as “software replacement vehicles.”
Theft Compensation Compensation (Software Replacement Vehicle)
Hyundai and Kia owners with vehicles that cannot receive the software upgrade will be eligible for the following compensation:
Purchase a steering wheel lock.
Purchase and install a glass break alarm or similar anti-theft system.
Purchase another aftermarket modification designed to deter or prevent theft, such as a modern accessory security kit.
Reimbursement is capped at $300 per claim as long as the vehicle was purchased without qualifying for the software upgrade.
Theft Compensation Benefit (Software Eligible Vehicles)
Hyundai and Kia have given away hundreds of thousands of free steering wheel locks to customers.
Hyundai and Kia customers who own a vehicle that can receive the software upgrade are eligible for reimbursement of up to $50 for a steering wheel lock at least 30 days before the software upgrade becomes available.
Partial compensation for theft (total loss of vehicle)
A theft settlement agreement will cover costs associated with the total loss of a Hyundai or Kia vehicle due to theft or attempted theft (if the situation in the online video occurs).
However, the reimbursement limit is 60% of the vehicle’s black book value.
Under the settlement, if the vehicle is not a total loss but personal property is stolen or damaged, Hyundai or Kia customers can receive up to $3,375 or 33 percent of the vehicle’s black book value, whichever is greater.
Theft compensation compensation (insurance related)
For policies that include coverage for theft due to theft or attempted theft, reimbursement of any insurance deductible and increased premiums paid is capped at $375 per incident.
Hyundai or Kia owners must provide evidence of any changes to their insurance.
Theft Compensation Reimbursement (Other Expenses)
Certain expenses may not be covered by insurance. Under the settlement, Hyundai and Kia will pay for: car rentals, taxi rides, towing costs and costs associated with speeding or red light tickets resulting from the theft of Hyundai or Kia vehicles.
However, reimbursement is capped at $250 per incident.
Attorneys representing the property owners who filed the lawsuit will receive $13,403,485.60 in attorney fees and $244,526.81 in expenses.
About 94 owners who filed lawsuits will each receive $1,000.
The title of the case is, Re: Kia Hyundai Motor Vehicle Theft Marketing, Sales Practices and Product Liability Lawsuit.
Plaintiffs are represented by Hagens Berman Sobol Shapiro LLP, Fegan Scott LLC, Humphrey Farrington & McClain, PC and Baron & Budd, PC
Beginning in July 2022, dozens of Hyundai and Kia theft class action lawsuits were filed nationwide.
Heather Jones v. Kia America, Inc. et al.
Joanna Puy et al v. Kia America, Inc. et al.
Erica Loburgio et al. v. Kia America, Inc. et al.
Charles W. Simmons et al. v. Kia America Inc., etc.
Rita Day v. Kia America, Inc. et al.
Brian Bendorf et al. Kia America etc.
Cobi Bissell v. Hyundai Motor America, Inc. et al.
Moon Station v. Kia America, Inc. et al.
Joe Taylor Slovak et al v. Kia America, Inc. et al.
Stephanie Marvin v. Kia America, Inc. et al.
Miriam Frulin et al v. Kia Motors America, Inc. et al.
Ann Brady et al. v. Kia America, Inc. et al.
Jon Bodie et al v. Kia America, Inc. et al.
Amber Hall v. Kia America, Inc. et al.
Lisa Hilliard et al. v. Kia America, Inc. et al.
Rivera v. Kia America, Inc. et al.
Rashawn Johnson v. Kia America, Inc. et al.
Patricia Browning et al. v. Kia America, Inc. et al.
Broadway v. Kia America, Inc. et al.
Jeff Spores v. Kia America, Inc. et al.
Pamela Givens v. Kia America, Inc.
Brandye Burnett v. Kia America, Inc. et al.
Steve Zammiller v. Kia America, Inc. et al.
ROBERT BARIS et al v. Kia America Inc., etc.
Laura Parker v. Kia America, Inc. et al.
Philos Jeong v. Kia America, Inc. et al.
Mary Horn v. Kia America, Inc. et al.
Anastasia Pearson et al. v. Kia America, Inc. et al.
Walker v. Kia America, Inc. et al.
Jennifer Fisher v. Kia America, Inc. et al.
Kathy Derkham et al v. Kia America, Inc. et al.
Adam Murphy v. Kia America, Inc. et al.
Juliette Neves v. Kia America, Inc. et al.
Gregory Alston et al. v. Kia America Inc. et al.
Brenda Baker v. Kia America, Inc. et al.
Nadia Stanich v. Kia America, Inc.
Tracy Martinez v. Kia America, Inc.
Beniman v. Kia America, Inc. et al.
Latoya C. Jones v. Kia America, Inc.
John Allen v. Kia America, Inc.
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