Hyundai / Kia Car Theft Defect

On Oct. 29, 2024, the court entered final judgment for the settlement approval. Two separate class members/objectors appealed that decision to the Ninth Circuit Court of Appeals. Both are appealing the court’s final approval of the class settlement. Approved settlement payments will not go out to class members until after these appeals are resolved. The briefing for these two appeals will likely get consolidated, but currently, the second objector’s briefing is set to conclude at the end of February.

Objector/class member Ruth Rubin is represented by attorneys Kara Mundy and Timothy McGranor of Vorys, Sater, Seymour and Pease LLP and Gary Mason of Mason LLP. Objector/class member Donald Birner is pro se, without counsel.

While there is no time limit for a decision from the appellate court, most cases are decided within 3 months to a year after they are argued and submitted to the appellate court. Currently, we estimate that these appeals could be resolved sometime between September 2025 and June 2026. The Ninth Circuit has further information regarding appeals timing on its Ninth Circuit FAQ.

We are aware that the payments are greatly anticipated and wish we had better news for the millions of class members held up by these objections. We urge class members to be patient and check the court’s FAQ if further information about this process is desired.

On Oct. 1, 2024, Judge Selna granted final approval of the settlement.

Now that the settlement has received final approval, valid settlement claims for reimbursement of qualifying purchases will be paid once the time for any party to appeal the final approval order has passed, or if any appeals are filed, after such appeals are resolved. Valid common fund claims will be paid after all such timely claims are received, processed, and, if applicable, appealed.

The deadline to submit all settlement claims, including common fund claims, is currently March 30, 2025, but may be extended under the terms of the settlement agreement. Any appeal of the final approval order will delay settlement payments until resolution of the appeal.

Read the order »

At the final approval hearing held on Sept. 30, 2024, the court indicated it would grant final approval to the settlement. We will post that ruling when it issues.

On July 15, 2024, the court held a fairness hearing regarding final approval of the class-action settlement. The court issued a tentative order prior to the hearing in which it overruled all objections to the settlement, but did express concern about the release of claims for diminution in value. Next, class counsel will submit a report on that subject showing that the models have retained value compared to comparable cars. The lone objector who raised this point submitted no evidence of diminution in value. We are confident once Judge Selna receives the information, he will grant final approval. A final approval hearing has been rescheduled for Sept. 30, 2024.

A federal judge granted preliminary approval to an amended settlement agreement with Hyundai and Kia in the class action regarding the lack of an engine immobilizer in certain model year 2008-2022 Hyundai and 2011-2022 Kia vehicles with traditional turn-key ignition systems. The settlement is estimated to value up to $145 million or more in cash relief to class members, and according to plaintiffs’ economic expert report cited in the revised preliminary approval motion, it will likely bring “near full compensation” to most insured Hyundai and Kia owners who experienced theft and/or damaged vehicles due to the lack of an immobilizer. Engineering experts also conducted over 100 tests and determined that the software update included in the settlement will resolve the security defect in most impacted vehicles. 

Notice of the settlement will be sent out to class members no later than March 4, 2024, and class members may file settlement claims during the notice period. The court must grant final approval of the settlement before payments to class members can begin. The court will hold a final approval hearing on July 15, 2024. The judge’s order on final approval could come at any time on or after this date, and only after an order granting final approval is issued and any appeals are resolved, will settlement payments go out to claimants. Any appeals will delay these payments.

On Sept. 27, 2023, Hagens Berman attorneys filed an amended settlement agreement and motion for preliminary approval in the U.S. District Court for the Central District of California. The amended settlement agreement includes, among other changes: elimination of the potential credit to defendants if settlement claims do not reach $50 million, adjusted reimbursements for total loss and partial loss that align with estimated vehicle values and additional supporting expert evidence regarding the settlement benefits.

Under the amended settlement agreement, class members who experienced vehicle theft will be eligible for reimbursement up to 60% of the Black Book value of their vehicle, including licensing fees, sales tax paid, registration fees and other expenses, rather than the flat $6,125 cap offered under the initial settlement agreement. 

Class members who experienced vehicle damage due to an attempted theft will be reimbursed up to 33% of the Black Book value of their vehicle or $3,375 per claim, whichever is greater.

Order

Following an Aug. 16 order from the court requesting various changes to the settlement agreement before it could receive preliminary approval, Hagens Berman and attorneys for Hyundai and Kia requested an additional 21 days to prepare the requested revisions to the proposed settlement agreement. The court granted this request, and Hagens Berman attorneys are working diligently to finalize a new settlement agreement, which includes collection and analysis of real-time data regarding field implementation of the Software Upgrade. We will submit the revised agreement and renewed motion for preliminary approval for the court’s consideration on Sept. 26.

In reviewing the proposed settlement agreement, Judge James V. Selna of the U.S. District Court for the Central District of California certified a proposed class of an estimated nine million people who purchased or leased a vehicle impacted by the immobilizer defect. Judge Selna agreed that the class definition meets all standards required to be certified in this case. The court’s decision also concluded that Hagens Berman, “is experienced in consumer class actions, including having previously represented consumers in litigation against Hyundai and Kia,” and is therefore suitable to represent the certified class.
 
The court, however indicated that it is not yet prepared to grant preliminary approval to the proposed settlement agreement. The order directs settling parties to make various changes to the agreement, including, “fashion[ing] a matrix for reimbursement that aligns with Class Member’s vehicle’s estimated value,” rather than taking an average of all vehicles, which include those manufactured between a wide range of years – 2011 to 2022. Judge Selna has also requested additional information regarding the software upgrade and implementation. Judge Selna indicated that he thought the parties could make the changes needed for him to grant preliminary approval. It is not unusual for a judge to require changes to a settlement

Next, Hagens Berman attorneys will file an amended motion for preliminary approval in the next month, with necessary changes made to address the court’s concerns. The Court will reconsider preliminary approval of the class settlement at that time.

Hagens Berman moved the U.S. District Court for the Central District of California for preliminary approval of a proposed settlement valued at more than $200 million. The terms of the proposed settlement include up to $145 million for out-of-pocket losses (including those related to thefts and attempted thefts), a free software upgrade and reimbursement for steering wheel lock purchases for certain Class Vehicles, and reimbursements up to $300 for the purchase of steering wheel locks and other antitheft systems for Class members whose Class Vehicles are not eligible for the software upgrade. 

The court will conduct a hearing on Aug. 15, 2023, where it will evaluate and consider preliminary approval of the settlement.

Hagens Berman reached a settlement-in-principle with Hyundai and Kia, following months of negotiations and mediation sessions. The settling parties are in the process of documenting the agreement, and the consumer plaintiffs will file a motion for preliminary approval of the settlement by July 20, 2023. Read more about the settlement in our press release »

Hagens Berman moved the U.S. District Court for the Central District of California for preliminary approval of a proposed settlement valued at more than $200 million. The terms of the proposed settlement include up to $145 million for out-of-pocket losses (including those related to thefts and attempted thefts), a free software upgrade and reimbursements up to $300 for the purchase of steering wheel locks and other antitheft systems for class members whose class vehicles are not eligible for the software upgrade. 

The court will conduct a hearing on Aug. 15, 2023, where it will evaluate and consider preliminary approval of the settlement. Read more about the settlement in our press release »

Hagens Berman managing partner Steve W. Berman appointed co-lead counsel for the plaintiffs in Kia Hyundai Vehicle Theft Marketing, Sales Practices, and Products Liability Litigation by U.S. District Judge James V. Selna.

In a Dec. 13, 2022 order, plaintiffs in the case against Hyundai and Kia have moved to centralize 16 cases across various districts to the U.S. District Court for the Central District of California, assigned to the Honorable James V. Selna to “serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation.” The case caption has also been updated to more accurately reflect the case, as In re: Kia Hyundai Vehicle Theft Marketing, Sales Practices, and Products Liability Litigation. Judge Selna was the MDL judge in the Toyota Sudden Unintended Acceleration case in which Steve Berman served as co-lead counsel. “It will be an honor to be before a jurist like Judge Selna again, and I hope I am selected as one of the co-leads in this litigation, as the Toyota SUA case was one of my career favorites.”