Hyundai Motor America and Kia America mentioned Friday they’ve reached a settlement to resolve a class-action lawsuit prompted by a surge in automobile thefts.
The settlement could possibly be valued at $200 million and covers about 9 million 2011-2022 mannequin yr Hyundai and Kia autos within the U.S., the businesses mentioned.
The vehicles are usually not outfitted with push-button ignitions and immobilizing anti-theft units. That has allowed thieves to simply steal them utilizing only a screwdriver and a USB wire, making a current rash of auto thefts throughout the nation.
The settlement will present money compensation to prospects who suffered theft-related losses or injury not lined by insurance coverage — in addition to reimbursement for insurance coverage deductibles, elevated insurance coverage premiums and different losses, Kia and Hyundai mentioned.
A software program improve can even be supplied to eligible homeowners. For prospects with autos that can’t accommodate the software program improve, the settlement will present a reimbursement of as much as $300 for anti-theft units.
Kia and Hyundai have additionally given impacted prospects tens of 1000’s of free steering wheel locks by way of native regulation enforcement and direct shipments, the businesses mentioned.
The complete settlement quantity will rely on what number of prospects take part.
“Hyundai and Kia failed to sell cars equipped with fundamental anti-theft features, and that was not a victimless act,” lawyer Elizabeth A. Fegan of Fegan Scott, one of many regulation companies representing the plaintiffs, mentioned in a press release. “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.”
The proposed settlement is predicted to be reviewed in courtroom for preliminary approval in July.
The wave of Hyundai and Kia thefts started in 2021 and unfold nationally, with a spike final summer time, fueled by tutorial movies posted on TikTok and different social media websites. Some police departments report continued thefts regardless of the automakers’ unveiling of anti-theft software program almost three months in the past.
Both Jason Erb, Hyundai Motor North America’s chief authorized officer, and John Yoon, Kia America’s chief authorized officer, pressured that the businesses are dedicated to buyer security.
“We appreciate the opportunity to provide additional support for our owners who have been impacted by increasing and persistent criminal activity targeting our vehicles,” Erb mentioned.
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