Kia, Hyundai settle class-action lawsuit for $200M. Car-theft trend started in Milwaukee
Korean automakers Kia America and Hyundai Motor America have settled a class action lawsuit for $200 million related to the car thefts that have been rampant in Milwaukee and other cities.
A statement from the companies states they will provide cash compensation for customers who incurred theft-related vehicle losses or damage not covered by insurance, in addition to reimbursement for insurance deductibles, increased insurance premiums and other theft-related losses.
“We appreciate the opportunity to provide additional support for our owners who have been impacted by increasing and persistent criminal activity targeting our vehicles,” Jason Erb, chief legal officer, Hyundai Motor North America, said in a news release. “Customer security remains a top priority, and we’re committed to continuing software upgrade installations and steering wheel lock distribution to help prevent thefts and offering insurance options through AAA for those who have had difficulty securing and sustaining coverage.”
The settlement comes as a result of a high rate of Kia and Hyundai thefts in cities that started in Milwaukee. It is known on TikTok as the Kia Challenge. The videos posted showed the "Kia Boys" demonstrating how to steal the vehicles using a USB charging cord or other metal object to start the engine.
The reason this worked was because the cars lacked immobilizers and had design flaws that allowed the cars to be stolen easily.
The city of Milwaukee also filed a lawsuit against the automakers in March. That case is pending.
A group of 23 attorneys general led by Wisconsin’s Josh Kaul wrote a letter in March to Kia and Hyundai, urging them to more quickly fix the nationwide car theft epidemic plaguing its customers.
The automakers also introduced a free anti-theft software upgrade for affected customers. The free anti-theft software upgrade modifies certain vehicle control modules on Hyundai and Kia vehicles equipped with standard “turn-key-to-start” ignition systems to include an “ignition kill” feature so the vehicles cannot be started when subjected to the method of theft popularized on TikTok and other social media channels.
All Hyundai and Kia vehicles produced since November 2021 are equipped with an engine immobilizer as standard equipment, according to the press release.
Here is what the settlement covers
The $200 million settlement covers a wide range of areas.
Additionally, there is $145 million set up for out-of-pocket losses, such as total loss of vehicle up to $6,125, loss of personal property up to $3,375, insurance-related expenses and payments for rental car, taxi, ride share, public transit and other payments not covered by insurance.
The settlement will also reimburse affected owners for towing costs, as well as other fees and taxes related to replacement vehicles, if the affected car was lost or stolen. It also covers payments for crashes, cars that weren't recovered and tickets and fines incurred while stolen.
In total, the settlement covers about 9 million U.S. car owners.
As part of this settlement, the software upgrade that helps prevent thefts of these vehicles will be automatically installed in conjunction with any service or maintenance appointment that brings the owner of an eligible vehicle into the dealership, according to the press release.
Customers whose vehicles cannot accommodate the software upgrade, the settlement includes reimbursement up to $300 for the purchase of various anti-theft devices. Hyundai and Kia said they would also offer tens of thousands of steering wheel locks through law enforcement or direct shipping to impacted owners.
Here are the vehicles that are covered in the settlement
Hyundai vehicles
2011-2022 Accent
2011-2022 Elantra
2013-2017 Elantra GT
2013-2014 Elantra Coupe
2011-2012 Elantra Touring
2011-2014 Genesis Coupe
2018-2022 Kona
2020-2021 Palisade
2011-2012, 2019-2022 Santa Fe
2013-2018, 2019 Santa Fe
Santa Fe XL
2013-2018 Santa Fe Sport
2011-2019 Sonata
2011-2022 Tucson
2012-2017, 2019-2021 Veloster
2020-2021 Venue
2011-2012 Veracruz
Kia vehicles
2011-2021 Forte
2021-2022 K5
2011-2020 Optima
2011-2021 Rio
2011-2021 Sedona
2021-2022 Seltos
2010-2022 Soul
2011-2022 Sorento
2011-2022 Sportag
This article originally appeared on Milwaukee Journal Sentinel: Kia, Hyundai settle class-action lawsuit for $200M. Car-theft trend began in Milwaukee
