Hyundai, Kia settle US car thefts for $200 million. On Thursday, lawyers for Hyundai Motor (005380. K.S.) and Kia Corp (000270. K.S.) announced a $200 million consumer class-action lawsuit settlement over chronic car thefts.
Korean automakers offered software upgrades to 8.3 million U.S. vehicles without anti-theft immobilizers in February to reduce car thefts using TikTok and other social media methods.
Hyundai and Kia would reimburse owners “who incurred theft-related vehicle losses or damage in addition to reimbursement for insurance deductibles, increased insurance premiums, and other theft-related losses.”
Korean automakers will provide consumers who cannot install security software $300 to buy steering wheel locks and other theft deterrents.
“The settlement will provide benefits as soon as possible to those who have suffered out-of-pocket losses,” said owner attorney Steve Berman.
In February, officials reported 14 wrecks and eight deaths in the U.S. due to TikTok videos explaining how to steal cars without push-button ignitions and immobilizing anti-theft equipment.
Lawyers for 9 million U.S. owners said the deal includes up to $145 million for out-of-pocket expenses for consumers whose cars were stolen.
The consumer settlement covers 2011–2022 Hyundai and Kia owners with a classic “insert-and-turn” steel key ignition system. It covers total car loss of up to $6,125, vehicle and personal property damage of up to $3,375, and insurance costs.
The payout includes car rental, taxi, and other non-insurance transportation charges.
Towing charges, stolen automobiles that crashed or were never found, tickets, and other fines can be repaid to owners.
St. Louis, Missouri; Cleveland, Ohio; San Diego, California; Milwaukee, Wisconsin; Columbus, Ohio; Baltimore, and Seattle have sued automakers for thefts.
