Hyundai Motor Co., which owns the Hyundai, Genesis and Kia brands, and Kia Corp. have agreed to a settlement potentially worth up to $145 million to resolve allegations that certain Kia vehicles were manufactured with design flaws making them easy targets for theft and damage.
The resolution comes after a series of class action lawsuits claimed the vehicles lacked essential engine immobilizers, rendering them susceptible to thefts, especially those propagated via social media platforms like TikTok.
The settlement encompasses a wide range of Kia models purchased or leased between 2011 and 2022 in the U.S. and its territories, including Puerto Rico, the U.S. Virgin Islands and Guam. The agreement does not preclude claims related to personal injury, death or subrogation by licensed insurers, maintaining the rights of individuals affected by these issues beyond the scope of theft and damage.
Under the terms of the settlement, eligible class members, specifically owners of certain models ranging from the 2011-2022 Kia Forte to the 2020-2022 Kia Soul, can benefit from various forms of compensation. These include a free software upgrade designed to prevent the vehicles from starting without the key present -- a response to the method of theft popularized on social media. Additionally, reimbursements for the purchase of steering wheel locks or similar anti-theft devices, as well as for the installation of glass-breakage alarms or other aftermarket anti-theft systems, are available to those impacted.
For vehicles ineligible for the software upgrade, owners may receive up to $300 in reimbursement per vehicle for anti-theft measures. The settlement outlines compensation for out-of-pocket and uncompensated losses resulting from theft or attempted theft, including up to 60% of the vehicle's value for total loss and up to $3,375 or 33% for damage incurred.
The settlement establishes a fund ranging from $80 million to $145 million to cover these claims. The deadline to opt out of or object to the settlement is May 3, 2024. The final fairness hearing in the Kia theft settlement is July 15, 2024. The deadline to submit a claim is Jan. 11, 2025.
