Kia and Hyundai Settle Theft-Defect Class Action for $145 Million

For years, millions of Kia and Hyundai owners drove vehicles that shipped without engine immobilizers, a theft-prevention device that had been standard on most competitors' models for decades. The gap left the cars open to a crude bypass method that spread rapidly on social media starting around 2021, fueling a wave of thefts and attempted thefts across the country.

Plaintiffs filed dozens of class actions against the two manufacturers, alleging the companies had knowingly sold vehicles with a foreseeable security gap and failed to disclose it to consumers. The cases were consolidated into a multidistrict proceeding before U.S. District Judge James V. Selna in the Central District of California.

Kenneth B. McClain of Humphrey, Farrington and McClain served as one of four co-lead class counsel, alongside attorneys from Hagens Berman Sobol Shapiro, Fegan Scott, and Baron and Budd. Together, the team negotiated a settlement valued at up to $200 million when announced in May 2023, structured around a guaranteed minimum compensation pool of $80 million for owners who suffered theft or damage, plus free software immobilizer upgrades for eligible model years, up to $300 toward aftermarket anti-theft devices for vehicles that could not receive the software fix, and reimbursement for lost wages and childcare costs incurred during upgrade appointments.

Judge Selna declined to approve an earlier version of the settlement in August 2023, citing concerns about the adequacy of the proposed remedies. After further negotiations, the parties returned with a revised agreement. The court granted final approval on October 1, 2024, with the $145 million figure representing the cash compensation ceiling available to class members who filed valid claims by January 11, 2025.

The settlement covered approximately nine million Kia and Hyundai vehicles sold in the United States that were manufactured without engine immobilizers, spanning model years from 2011 through 2022.