Owners of Hyundai and Kia vehicles determined to be relatively easy to steal will receive compensation following an over $200 million class action lawsuit settled on Thursday.
The $200 million settlement covers owners of affected vehicles, which amounted to 9 million — 4.5 million Hyundais and 4.5 million Kias. Drivers can receive up to $6,125 for the loss of their vehicle, up to $3,375 for damage to their vehicle and personal property, and costs covering insurance-related expenses and related expenses such as transit and ride-share costs not covered by insurance.
WHAT THE GOP WORK REQUIREMENT PROPOSAL WOULD REALLY DO
“The settlement will provide benefits as soon as possible to those who have suffered out-of-pocket losses due to car thefts in Hyundai and Kia cars without immobilizers,” said Steve Berman, managing partner at Hagens Berman law group and chairman of the lead committee representing affected vehicle owners in the lawsuit, according to Business Wire.
“Our goal in finalizing this settlement was to leave no one in the dark,” Berman added. “The owners of these cars have experienced enough upset, and we worked to achieve a settlement that covers many types of losses — from those who were lucky enough to have never had their theft-prone car stolen, to those whose stolen cars were totaled completely due to Hyundai and Kia’s negligence.”
The settlement will also reimburse vehicle owners who incurred towing costs and other fees and taxes related to replacement vehicles if the car was lost or stolen.
“Hyundai and Kia failed to sell cars equipped with fundamental anti-theft features, and that was not a victimless act,” Elizabeth Fegan of FeganScott law firm said. “We are pleased with the settlement reached and its immediate ability to hinder thieves, as well as compensate victims of thefts that have already occurred.”
Both motor vehicle companies announced the settlement and said it was the latest step to making certain vehicles without push-button ignitions or immobilizing anti-theft devices harder to steal.
“Kia is very pleased that today’s announcement will allow customers who have been impacted by vehicle thefts to receive additional benefits,” said John Yoon, chief legal officer at Kia America, Inc.
“This agreement is the latest step in a series of important actions, in addition to providing a free security software upgrade and distributing over 65,000 steering wheel locks, that Kia has taken to help customers whose vehicles have been targeted by criminals using methods of theft popularized on social media. Kia remains committed to assisting our customers and upholding vehicle security.”
Owners are also eligible for software updates to prevent the vehicles from starting without having a key present. The settlement also allocates upgrades to fix the “lack of immobilizer” — a fix that the lawsuit claimed would make it more difficult for a car to be stolen.
According to the lawsuit, “design flaws” in the Hyundais and Kias allowed thieves to steal them in less than 90 seconds. A lack of security in the steering columns also gave thieves easy access to the ignition cylinders for removal, the lawsuit said.
Kia America and Hyundai Motor America said in a press release that they believe their vehicles are “fully compliant” with federal anti-theft requirements. The company introduced a free anti-theft software earlier this year that modifies vehicle control modules so that there is an “ignition kill” feature that will prevent cars from beings stolen using charging cords, metal pieces, or other theft devices popularly shared on social media.
All Hyundai and Kia vehicles produced since November 2021 are equipped with an engine immobilizer as standard equipment, the companies stated. For cars that cannot accommodate the software updates, the settlement will offer reimbursement of up to $300 for the purchase of anti-theft devices.
States have also taken steps to prevent theft as motor vehicle theft continues to rise significantly throughout 2023 as homicides and violent crime decrease.
In New York, Mayor Eric Adams announced that the New York Police Department would begin giving out free Apple AirTags to people living in the Bronx neighborhoods of Castle Hill, Soundview, and Parkchester, where the NYPD has marked a 548% increase in stolen Kia and Hyundai models.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Chief of Patrol John Chell said Hondas, Hyundais, and Kias are targets citywide due to their manufacturing defects. A growing trend on TikTok has contributed to the rise in grand theft auto, as well, with videos circulating teaching thieves how to steal a vehicle.
“Your greatest investment is your automobile. It’s used for many different reasons. It’s used to get to and from your place of employment, to drop your children off every day,” Adams said on May 1. “Using technology to fight crime, protect people, save property is a direction this administration and this Police Department is going in.”
