— A Hyundai and Kia theft settlement has been granted final approval after dozens of Hyundai and Kia theft class action lawsuits were filed after teens began stealing the vehicles in 2021 in what was called the "Kia Challenge."
The teenage criminals break a window, tear apart the steering column, remove the ignition lock and start the vehicle with a standard USB cable. Criminals recorded their crimes and posted the videos online and "challenged" other people to do the same.
The lawsuits allege Hyundai and Kia didn't equip 2011-2022 vehicles with engine immobilizers, something not required in the U.S.
The National Highway Traffic Safety Administration investigated the vehicles and determined there were no defects or problems with the vehicles.
Federal safety investigators found the cause of the thefts to be teen criminals damaging and stealing the vehicles, while cities where those teens lived blamed Hyundai and Kia for "safety defects."
Due to the large number of consumer class actions, the automakers said they would settle the consolidated lawsuit to end the expensive and time consuming litigation. However, Hyundai and Kia deny all the allegations and say teenage criminals caused the thefts and resulting problems.
Hyundai Kia Theft Settlement
The final version of the theft settlement includes software updates and reimbursement options. The settlement emphasizes how the software updates will not prevent a vehicle from being stolen.
"The Software Upgrade does not guarantee any vehicle will not be subject to theft or attempted theft." — Hyundai Kia theft settlement
Many Hyundai and Kia owners contacted the court to object to the terms of the settlement. Overall, those objectors argue the $80 million to $145 million settlement fund is meaningless for owners of about nine million vehicles.
The judge overruled those owners who objected to the settlement, with some Hyundai and Kia drivers complaining the settlement should have been no less than $1 billion.
In addition, several "benefits" of the theft settlement were already being offered for free by Hyundai and Kia long before the settlement was reached.
Hyundai Theft Settlement Vehicles
- 2011-2022 Hyundai Accent
- 2011-2022 Hyundai Elantra
- 2013-2020 Hyundai Elantra GT
- 2013-2014 Hyundai Elantra Coupe
- 2011-2012 Hyundai Elantra Touring
- 2011-2014 Hyundai Genesis Coupe
- 2018-2022 Hyundai Kona
- 2020-2021 Hyundai Palisade
- 2011-2022 Hyundai Santa Fe
- 2019 Hyundai Santa Fe XL
- 2013-2018 Hyundai Santa Fe Sport
- 2011-2019 Hyundai Sonata
- 2011-2022 Hyundai Tucson
- 2012-2017, 2019-2021 Hyundai Veloster
- 2020-2021 Hyundai Venue
- 2011-2012 Hyundai Veracruz
Kia Theft Settlement Vehicles
- 2011-2021 Kia Forte
- 2021-2022 Kia K5
- 2011-2020 Kia Optima
- 2011-2021 Kia Rio
- 2011-2021 Kia Sedona
- 2021-2022 Kia Seltos
- 2011-2022 Kia Soul
- 2011-2022 Kia Sorento
- 2011-2022 Kia Sportage
Theft Settlement Software Upgrade (Eligible Vehicles)
Though the theft class action lawsuit settlement call this a "benefit" of the settlement, Hyundai and Kia were offering these free updates long before the settlement agreement was reached.
The software upgrade is only to prevent a vehicle that was locked using a key fob from being started without the key being present, "by the method of theft popularized on TikTok and other social media channels."
This means the software upgrade will prevent the vehicle from being started by a USB cable after removing the steering column. However, the criminals can still break the windows, destroy the steering columns and remove the ignition locks, actions necessary before using a USB cable in a locked car.
Theft Settlement Software Upgrade (Alternative Vehicle)
Certain Hyundai and Kia vehicles cannot accept the software upgrade and the settlement agreement calls these "software alternative vehicles."
Theft Settlement Reimbursement (Software Alternative Vehicle)
Hyundai and Kia owners who own a vehicle that cannot accept the software upgrade will be eligible for reimbursement for the following:
- Purchase of a steering wheel lock.
- Purchase and installation of a glass breakage alarm or similar anti-theft system.
- Purchase of another aftermarket modification designed to deter or prevent theft such as the Hyundai Accessory Security Kit.
Reimbursement is capped at $300 per claim as long as the purchase was made when the vehicle was not eligible for the software upgrade.
Theft Settlement Reimbursement (Software Eligible Vehicles)
Hyundai and Kia have already provided hundreds of thousands of free steering wheel locks to customers.
Hyundai and Kia customers with vehicles that can receive the software upgrade are eligible for up to a $50 reimbursement for a steering wheel lock purchase if it was at least 30 days before the software upgrade was made available.
Theft Settlement Partial Reimbursement (Total Vehicle Loss)
The theft settlement will cover expenses related to a total loss of a Hyundai or Kia vehicle to theft or attempted theft if it occurred as in the online videos.
But the reimbursement is subject to a maximum cap of 60% of the Black Book value of the vehicle.
According to the settlement, a Hyundai or Kia customer may be reimbursed up to $3,375 or 33% (whichever is greater) of the Black Book value of the vehicle if the vehicle wasn't a total loss but personal property was stolen or damaged.
Theft Settlement Reimbursement (Insurance-Related)
Reimbursement of any insurance deductibles paid and increased insurance premiums for insurance policies that includes theft coverage resulting from a theft or attempted theft is subject to a per incident cap of $375.
And the Hyundai or Kia owner must provide proof to show any changes in their insurance.
Theft Settlement Reimbursement (Other Expenses)
It's possible certain expenses were not covered by insurance. According to the settlement agreement, Hyundai and Kia will provide reimbursement for: Car rentals, taxi rides, towing costs and expenses related to speeding or red light tickets caused by a stolen Hyundai or Kia vehicle.
However, reimbursement is capped at $250 per incident.
The attorneys representing the owners who sued will receive $13,403,485.60 in attorneys’ fees and $244,526.81 in expenses.
About 94 vehicle owners who filed the lawsuit will receive $1,000 each.
The case is titled, In re: Kia Hyundai Vehicle Theft Marketing, Sales Practices, and Products Liability Litigation.
The plaintiffs are represented by Hagens Berman Sobol Shapiro LLP, Fegan Scott LLC, Humphrey Farrington & McClain, P.C., and Baron & Budd, P.C.
Beginning in July 2022, dozens of Hyundai and Kia theft class action lawsuits were filed nationwide.
- Heather Jones v. Kia America, Inc. et al
- Joanna Pue et al v. Kia America, Inc. et al
- Erica Loburgio et al v. KIA America, Inc. et al
- Charles W. Simmons et al v. Kia America, Inc. et al
- Rita Day v. Kia America, Inc. et al
- Brian Bendorf et al v. KIA America et al
- Cobi Bissell v. Hyundai Motor America Corporation et al
- Stacie Moon v. Kia America, Inc. et al
- Jo Taylor Slovak et al v. KIA America Inc. et al
- Stefanie Marvin v. Kia America Inc et al
- Miriam Fruhling et al v. Kia Motors America, Inc. et al
- Ann Brady et al v. Kia America, Inc. et al
- Jon Bodie et al v. Kia America, Inc. et al
- Amber Hall v. Kia America, Inc. et al
- Lisa Hilliard et al v. Kia America, Inc. et al
- Rivera v. Kia America, Inc. et al
- LaShaun Johnson v. Kia America, Inc. et al
- Patricia Browning et al v. Kia America Incorporated et al
- Broadway v. Kia America, Inc. et al
- Jeff Spores v. Kia America, Inc. et al
- Pamela Givens v. KIA America, Inc.
- Brandye Burnett v. Kia America, Inc. et al
- Steve Zanmiller v. Kia America, Inc. et al
- Robert Ballis et al v. Kia America, Inc. et al
- Laura Parker v. Kia America, Inc. et al
- Philos Jeong v. Kia America, Inc. et al
- Mary Horne v. Kia America, Inc. et al
- Anastasia Pearson et al v. Kia America, Inc. et al
- Walker v. Kia America, Inc. et al
- Jennifer Fisher v. Kia America, Inc. et al
- Casey DeKam et al v. Kia America, Inc. et al
- Adam Murphy v. Kia America, Inc. et al
- Juliette Neves v. Kia America, Inc. et al
- Gregory Alston et al v. Kia America, Inc. et al
- Brenda Baker v. Kia America, Inc. et al
- Nadia Stanich v. Kia America, Inc.
- Tracy Martinez v. Kia America, Inc.
- Beneman v. Kia America, Inc. et al
- Latoya C. Jones v. Kia America, Inc.
- John Allen v. Kia America, Inc.