Key Takeaways
- Hyundai and Kia have faced multiple class action lawsuits and settlements related to vehicle theft vulnerabilities, engine defects, fuel injector issues, and anti-lock brake system (ABS) defects.
- Major settlements have been reached, including a $200 million agreement over theft vulnerabilities in certain 2011-2022 models, offering compensation and software upgrades to affected owners and lessees.
- Ongoing recalls and buyback programs provide additional remedies for consumers, but eligibility and compensation depend on specific vehicle models and the nature of the defect or loss.
Overview of Hyundai Lawsuits
Hyundai Motor America (HMA) and its affiliate Kia have been the subject of several high-profile class action lawsuits in recent years. These legal actions primarily concern alleged defects in vehicle security and mechanical systems. The most notable lawsuits involve claims that certain Hyundai and Kia vehicles are vulnerable to theft due to missing engine immobilizers, as well as allegations of engine, fuel injector, and ABS defects. These lawsuits have resulted in significant settlements and ongoing recalls, affecting millions of vehicle owners across the United States.
This guide provides a comprehensive overview of the major lawsuits, settlements, and consumer remedies involving Hyundai. It covers theft-related claims, engine and fuel injector defects, ABS issues, and relevant recall and buyback programs. Official sources are cited throughout for further reference.
Hyundai and Kia Vehicle Theft Lawsuit
Background and Allegations
A major class action lawsuit was filed against Hyundai and Kia, alleging that certain vehicles manufactured between 2011 and 2022 were not equipped with an engine immobilizer—a standard anti-theft device in most modern cars. Plaintiffs claimed that this omission made the vehicles especially susceptible to theft, a vulnerability that became widely known through social media and led to a spike in thefts nationwide.
The lawsuit, consolidated as "In re: Kia Hyundai Vehicle Theft," was brought in the U.S. District Court for the Central District of California. Plaintiffs alleged that Hyundai and Kia engaged in deceptive marketing and failed to disclose the security risks associated with their vehicles.
Settlement Details
In May 2023, Hyundai and Kia agreed to a proposed settlement valued at over $200 million. The settlement provides several forms of relief to eligible owners and lessees of affected vehicles, including:
- Compensation for eligible losses, such as up to 60% of the Black Book value if the vehicle was declared a total loss due to theft.
- Reimbursement for out-of-pocket expenses, including up to $375 for insurance deductibles and increased premiums.
- Software upgrades to enhance vehicle security.
- Compensation for inconvenience due to repair delays.
Final approval of the settlement was granted, and affected consumers can find more information and submit claims at the official settlement website. The Oakland City Attorney's office also provides an official update confirming eligibility for software upgrades and compensation.
Eligibility and Claims Process
Owners and lessees of certain 2011-2022 Hyundai and Kia models are eligible for benefits under the settlement. The claims process requires documentation of ownership and, if applicable, proof of loss or expenses. The settlement website provides detailed instructions and deadlines for filing claims.
Hyundai Engine Defect Lawsuits
Theta Engine Class Action Settlement
Hyundai has also faced class action litigation over alleged defects in its Theta engines, used in various models from 2010 to 2020. Plaintiffs claimed that these engines were prone to premature failure, including engine seizure, stalling, and even fire risks. The lawsuits alleged violations of consumer protection laws, breach of warranty, and fraud.
A settlement was reached and approved by the court on June 10, 2021. The settlement provides compensation for repairs, reimbursement for related expenses, and extended warranties for affected vehicles. More information and claim submission details are available at the official Theta Engine Settlement website.
Additional Engine Defect Claims
Further lawsuits have been filed regarding engine defects in Hyundai and Kia vehicles, including claims that certain models are at risk of engine seizure and fire. These lawsuits are ongoing and may result in additional settlements or recalls. For a summary of these claims, see the CBS News coverage.
Fuel Injector Defect Investigation
A separate class action lawsuit and investigation concern alleged defects in the fuel injectors of Hyundai vehicles manufactured between 2020 and 2024. Plaintiffs claim that faulty fuel injectors can cause engine performance issues, increased emissions, and potential safety hazards.
While this lawsuit is still under investigation, affected consumers can monitor updates and participate in the investigation process. Details are available at the Union Rayo investigation page. As this is an active case, all information is based on current allegations and may change as the case progresses.
Anti-Lock Brake System (ABS) Defect Lawsuit
Another class action lawsuit alleges that certain Hyundai vehicles have defective ABS modules, which can lead to brake failure or fire. Plaintiffs assert claims of consumer fraud and breach of warranty, arguing that Hyundai failed to disclose the risks associated with the ABS system.
This lawsuit is ongoing, and affected consumers can find more information at the McCune Wright Arevalo ABS lawsuit page. As with other active cases, the details are based on current allegations and may be subject to change.
Hyundai E2 Vehicle Settlement
Hyundai has also reached a class action settlement regarding alleged defects in the Hyundai E2 models. The settlement provides compensation and repair options for eligible owners and lessees. More information and claim forms are available at the official E2 settlement website.
Recalls and Buyback Programs
Recent Recalls
Hyundai has issued several recalls in response to the lawsuits and ongoing investigations. Notably, certain 2019-2022 Veloster N, 2019-2023 Genesis G70, 2022-2023 Elantra N, and Kona N vehicles have been recalled due to a potential fuel pump failure that can result in a loss of drive power. Owners should check the National Highway Traffic Safety Administration (NHTSA) recall database for the latest information and instructions.
Buyback and Arbitration Programs
For consumers who experience repeated issues with their Hyundai vehicles, the Hyundai Buy Back Program offers a potential remedy. This program allows eligible owners to negotiate compensation or a vehicle buyback, especially in states like California with strong lemon law protections. Dispute resolution services are also available through BBB National Programs.
What Consumers Should Do
If you own or lease a Hyundai or Kia vehicle affected by any of the above issues, it is important to:
- Check your vehicle's eligibility for settlements, recalls, or buyback programs.
- Gather documentation of ownership, repairs, and any losses or expenses.
- Visit the official settlement and recall websites for up-to-date information and claim instructions.
- Consider consulting with an attorney or legal professional for personalized advice.
Official Resources
- Hyundai Theft Settlement
- Theta Engine Settlement
- Hyundai E2 Settlement
- NHTSA Recall Database
- BBB National Programs Dispute Resolution
- Oakland City Attorney Settlement Update
Disclaimer
This guide provides a general overview of recent lawsuits, settlements, and recalls involving Hyundai and Kia. It is not legal advice. Some cases are ongoing, and the information is based on current allegations and public records as of June 2024. For specific legal advice or the most current information, consult an attorney or visit the official settlement and recall websites.
