Court Sides with AGs Contending Hyundai-Kia Theft Class Action Settlement Is Inadequate

  • On August 11, a coalition of seven Democratic AGs wrote a letter to the federal court overseeing the proposed class-action settlement regarding certain alleged theft-prone vehicles manufactured by Hyundai and Kia, arguing that the proposed settlement fails to adequately respond to the ongoing public safety crisis caused by the vulnerability of the vehicles. Shortly afterward, on August 16, the federal court declined to approve the proposed settlement for a failure to provide “fair and adequate” relief to the vehicle owners.
  • In their objection letter, the AGs had criticized the proposed settlement for not requiring the manufacturers to install engine-immobilizer technology in the alleged theft-prone vehicles, instead relying on “inadequate half-measures” such as software upgrades and reimbursements for the purchase of anti-theft systems. The AGs asked the court to require a recall of the vehicles at issue to install engine-immobilizer technology, which would remove burdens imposed on class members and more quickly remediate the harm to consumers and risks to the public posed by the theft-prone vehicles.
  • We have previously reported on efforts to address the issues with the vehicles, including an AG coalition’s letter to the National Highway Traffic Safety Administration (NHSTA) urging either a mandatory or voluntary recall.