Hyundai and Kia have agreed to pay more than $200 million to owners of as many as 9 million vehicles on the road that lack engine immobilizers as part of a class-action lawsuit.
The automakers did not include the crucial anti-theft device, which prevents the engine from starting without a key present, on base trims levels of certain 2011-2021 model year Hyundai and Kia vehicles. Owners claimed that runs afoul of a vehicle safety rule that requires that a car must not be able to start without the key.
Last summer TikTok users posted how-to videos that exposed a method to easily hot wire the vehicles. The social media posts triggered a spike in a vehicle theft across the U.S.
Attorneys representing plaintiffs called the settlement “comprehensive, welcome relief.”
A large portion of the settlement, $145 million, will go toward out-of-pocket losses experienced by owners, including vehicles lost or stolen, vehicles that incurred damages, loss of personal property and insurance-related expenses, according to attorneys.
Steve Berman, managing partner at the Hagens Berman law firm in Seattle and lead attorney in the lawsuit, said in a statement that they “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.”
A spokesperson for Kia confirmed the settlement and said in a statement the company is “pleased” to resolve the class-action litigation.
Hyundai also confirmed a settlement had been reached.
