Understanding the Hyundai Class Action Lawsuit

By Willis Garrett Last updated May 21, 2025 0

The Hyundai class action lawsuit alleges the automakers failed to include standard anti-theft technology in certain models, leaving owners vulnerable to a surge in thefts and related damages. Hyundai and Kia prioritized profits over consumer safety, but a $145 million settlement now offers free software upgrades and reimbursement opportunities to address these issues. Exploring the lawsuit’s details can help you protect your vehicle and understand the companies’ accountability.

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Key Takeaways

The class action lawsuit alleges Hyundai and Kia failed to include standard engine immobilizers, making certain models vulnerable to theft.
The theft epidemic surrounding Kia and Hyundai models has reached alarming proportions, with a 200% year-over-year increase in thefts.
The lawsuit aims to hold the automakers accountable for prioritizing profits over consumer safety by omitting essential anti-theft technology.
The $145 million settlement agreement offers free software upgrades and reimbursement for anti-theft device purchases to eligible vehicle owners.
Owners of 2011-2022 Hyundai or Kia vehicles can receive compensation for certain losses not covered by insurance if their car is stolen.

The Defect Allegations

According to the lawsuit, a primary defect at the heart of this class action is the automakers’ failure to equip certain Kia and Hyundai vehicles with standard engine immobilizers. This security vulnerability has made these models prime targets for theft, with thieves exploiting the issue through viral social media tutorials.

Law enforcement reports a surge in thefts of these Kia and Hyundai models due to their lack of basic anti-theft technology. The lawsuit alleges the automakers cut costs by omitting engine immobilizers, putting vehicle owners at risk of higher insurance costs, increased theft and vandalism, and disruption to their daily lives.

The Theft Epidemic

The theft epidemic surrounding Kia and Hyundai models has reached alarming proportions. Thefts have skyrocketed, with a staggering 200% year-over-year increase in Milwaukee. Worryingly, two-thirds of the stolen vehicles lack engine immobilizers, making them easy targets for thieves.

Viral “Kia Challenge” videos even provide step-by-step instructions on stealing these vulnerable Kia and Hyundai vehicles. This surge in thefts has led to dangerous incidents, with suspects and bystanders suffering serious injuries or fatalities.

As part of the class action lawsuit, owners of certain affected Kia and Hyundai models may be able to submit a claim on the settlement website.

Automaker Accountability

Hyundai and Kia’s decision to prioritize profits over consumer safety by omitting basic anti-theft technology is unacceptable. Consumers have a right to feel secure in their vehicles, and the automakers must be held accountable for their negligence.

This class action lawsuit aims to force the companies to install effective security measures and provide compensation to affected owners, ensuring they take responsibility for their actions.

Automakers’ Cost-Cutting Choices

While automakers often tout their commitment to innovation and consumer safety, the reality is that many are willing to make cost-cutting choices that jeopardize the well-being of their customers.

This is the case with Hyundai and Kia, who chose to sell vehicles without standard engine immobilizers to reduce costs, leaving consumers vulnerable to widespread theft. Despite public outcry and rising theft rates, the automakers failed to address this security flaw, prioritizing profits over consumer security.

The class action lawsuit seeks to hold Hyundai and Kia accountable for these reckless decisions, which have exposed owners of affected vehicles to theft without a knock sensor detection system.

Consumers Deserve Safe Vehicles

Consumers deserve to drive vehicles equipped with basic safeguards against theft, yet Hyundai and Kia callously denied this fundamental right. By cutting costs, the automakers created a security flaw that has left customers vulnerable.

Affected consumers must submit a claim by the deadline to receive financial relief and security upgrades under the proposed settlement. Once Judge Selna grants final approval, class members held by the Ninth Circuit Court’s decision can visit the settlement websites linked to Kia or Hyundai dealerships to obtain the court-approved remedies for their stolen Kia and Hyundai vehicles.

Automakers must be held accountable for prioritizing profits over consumer safety.

Settlement Details

Ultimately, the court-approved $145 million settlement agreement with Hyundai and Kia provides a compelling resolution to the class action lawsuit. The settlement:

Offers a free software upgrade to address the theft vulnerability in most affected vehicles.
Allows owners of ineligible vehicles to seek reimbursement up to $300 for purchasing anti-theft devices.
Faces a delay in payout as two class members have appealed the decision to the Ninth Circuit Court of Appeals, with the process likely to be resolved sometime between September 2025 and June 2026.

While the appeals process may delay settlement payments, the agreement’s extensive provisions demonstrate Hyundai and Kia’s commitment to addressing the concerns of affected consumers.

Objections and Appeals

While the settlement agreement has been approved, two class members have appealed the decision to the Ninth Circuit Court of Appeals.

As the appeals process unfolds over the next year, the court will carefully consider the objections raised by the appellants. Until the appeals are resolved, eligible class members can’t receive their approved settlement payments.

Opposing Settlement Approval

Although the court approved the amended settlement agreement, two class members have appealed this decision to the Ninth Circuit Court of Appeals. The appeals process will likely involve:

Consolidated briefing, with the second objector’s briefing set to conclude at the end of February 2025.
Resolution between September 2025 and June 2026, delaying the distribution of approved settlement payments to class members.
One objector represented by attorneys, while the other is proceeding pro se.

Most cases decided by the Ninth Circuit are resolved within 3 months to a year after being argued and submitted. The appeals could impact the claim for most benefits under the lawsuit alleging Hyundai misrepresented the fuel economy of its vehicles.

Appellate Court Considerations

The appeals by class members Ruth Rubin and Donald Birner will now put the final approval of the Hyundai settlement agreement under the close scrutiny of the Ninth Circuit Court of Appeals.

With Birner proceeding pro se without counsel, the objectors’ briefing will likely conclude by February 2025. Although most appeals are decided within 3 months to a year, the Ninth Circuit appeals could be resolved sometime between September 2025 and June 2026, further delaying payment of approved settlement funds to class members.

Attorneys Kara Mundy, Timothy McGranor, and Gary Mason represent Rubin in challenging the amended settlement approval.

How Do Class Action Lawsuits Like the Hyundai One Compare to the Kraft Heinz Lawsuit?

Class action lawsuits, such as the one involving Hyundai, highlight consumer grievances against large corporations. Similarly, kraft heinz faces class action lawsuit allegations, drawing attention to issues like misleading advertising or product safety. Both cases emphasize the importance of legal accountability and consumer protection in today’s market.

Eligibility and Benefits

To be eligible for the Hyundai class action lawsuit settlement, you must have purchased or leased certain 2011-2022 Hyundai or Kia vehicles in the U.S. or its territories with traditional turn-key ignition systems and no engine immobilizers.

The revised settlement provides various categories of relief, estimated to value up to $145 million or more in cash relief to class members. If eligible, you may receive:

Reimbursement for the cost of a software update or other theft deterrent products up to $300.
Compensation for certain losses not covered by insurance if your vehicle is stolen.
Varying cash payments based on your eligible losses and required documentation.

Protecting Yourself

Given the vulnerability of certain Hyundai and Kia vehicles to theft, it’s instrumental that owners take proactive measures to protect their assets. The court’s final approval of the class action settlement provides a path forward, including reimbursement for steering wheel locks or other anti-theft systems up to $300.

Additionally, a free software upgrade is available to resolve the security vulnerability in most impacted models. Lessors can also get reimbursed for the costs of the software update or other theft deterrent products. Payments are greatly anticipated following the order granting final approval.

While not all model year vehicles are eligible, the extended warranty and potential compensation for theft make this settlement highly beneficial.

Conclusion

You’d better pay close attention to the Hyundai class action lawsuit – it’s a prime example of how automakers must be held accountable for their failings. The settlement details may seem enticing, but don’t be fooled; this is just the tip of the iceberg. To safeguard yourself, you’ll need to stay vigilant and explore every avenue to guarantee your car is protected from the theft epidemic plaguing Hyundai models. The battle isn’t over yet, so keep your guard up.