Kia and Hyundai will pay more than $200 million settlement over class action from owners
Kia and Hyundai have agreed to settle a class action lawsuit worth about $200 million over rampant auto thefts of vehicles from the Korean automakers.
The lawsuit was brought by owners of Hyundai or Kia vehicles who said their cars were easy to steal after a series of thefts was inspired by a Tik Tok trend.
Videos went viral showing how to start the Kia and Hyundai without push-button ignition and immobilize anti-theft devices with just a USB cable.
The settlement covers approximately nine million U.S. owners and includes up to $145 million in cash losses for those whose cars were stolen.
It includes payments for total loss of vehicles up to $6,125, damage to vehicle and personal property up to $3,375, and insurance-related expenses.
Kia and Hyundai have agreed to settle a class action lawsuit worth about $200 million over rampant auto thefts of vehicles from the Korean automakers that were inspired by a Tik Tok trend
The lawsuit was brought by owners of Hyundai or Kia vehicles who said their cars were easy to steal after a series of thefts
The settlement covers approximately nine million U.S. owners and includes up to $145 million in cash losses for those whose cars were stolen
Hyundai and Kia said they will reimburse owners “who have incurred theft-related losses or damage to vehicles, in addition to compensation for deductibles, increased insurance premiums and other theft-related losses.”
For customers whose vehicles cannot perform security software upgrades, the Korean automakers will provide up to $300 towards the purchase of steering wheel locks and other theft or prevention tools.
“The settlement will bring benefits to those who suffered cash losses as soon as possible,” said Steve Berman, an attorney representing property owners.
“Our goal in finalizing this settlement was to leave no one in the dark.
“The owners of these cars have been through enough upset, and we’ve worked on a settlement that covers many types of losses — from those who were lucky enough to have their theft-prone car never stolen, to those whose stolen cars were a complete total loss.” because of the negligence of Hyundai and Kia.”
Other related costs including car rental, taxi or other transportation costs not covered by insurance are also included in the settlement.
And anti-theft software is automatically added to vehicles at every dealer service appointment.
A TikTok video posted in the US shows how to start a Kia with just a USB cable
The car thefts were fueled by a Tik Tok trend showing users how to steal Kia and Hyundai vehicles that lack basic security features
Owners can be reimbursed for towing costs and for stolen vehicles that crashed or were never recovered, as well as payments for tickets or other fines or fines incurred as a result of a stolen vehicle.
The car thefts were fueled by a Tik Tok trend in which users showed how to steal Kia and Hyundai vehicles without basic security features.
Although the original challenge video was taken down, copycats came to the fore so far that TikTok has asked users to report any copies that were made.
Authorities have revealed that these thefts led to at least 14 reported crashes and eight fatalities.
Kia and Hyundai said in February they would provide free software solutions for 8.3 million vehicles to stem a spate of thefts inspired by the TikTok videos.
Chicago saw thefts of the two car brands increase by a whopping 767 percent between July and August last year compared to the same period in 2021, the Chicago Police Department said.
The disturbing trend was seen in cities across America and in Portland, Oregon, Hyundai’s thefts rose 153 percent while Kias’s rose 269 percent, according to city police.
Authorities have revealed that these car thefts resulted in at least 14 reported accidents and eight fatalities
In Columbus, Ohio, the two brands made up 38 percent of all cars stolen in 2022, the New York Post reported.
In Los Angeles, Kias and Hyundais were responsible for 20 percent of all car thefts last August, up from 13 percent at the same point the year before.
Police in Charlotte, North Carolina, reported last year that car thefts were 30 percent higher than usual, with most vehicles being Kias and Hyundai.
Many major cities sued the automakers over the thefts, including St. Louis, Missouri, Cleveland, Ohio; San Diego, California; Milwaukee, Wisconsin; Columbus, Ohio; Baltimore and Seattle.