A class-action lawsuit has been filed against Kia and Hyundai, focusing on concerns related to the security systems in their vehicles. The lack of adequate security features in certain models has led to a sharp increase in vehicle thefts, prompting users in New York and other cities to file complaints. The lawsuit targets specific models released since 2011 that are particularly vulnerable to theft.
Kia-Hyundai Class Action Lawsuit 2024
The lawsuit highlights several security issues that have made Kia and Hyundai vehicles easy targets for thieves.
- Attractive Designs and High Sales: Kia and Hyundai have seen impressive sales due to their appealing designs and competitive pricing, making them popular choices among buyers.
- Rising Thefts and Accidents: In recent years, the number of thefts and accidents involving these vehicles has surged, largely due to weak security systems.
- Lack of Engine Immobilizers: Many Kia and Hyundai models lack engine immobilizers, a basic security feature that prevents the engine from starting without the correct key. This oversight has allowed thieves to steal vehicles using simple tools like screwdrivers or USB cords.
- Social Media Influence: The issue gained widespread attention after videos showcasing the ease of stealing these vehicles went viral on social media platforms. This exposure has fueled the lawsuit, with more victims coming forward.
Settlement Payment of $3,375 and Software Upgrades
Kia and Hyundai have agreed to a settlement to address the security flaws, offering both software upgrades and monetary compensation to affected customers. However, not all class members are eligible for the software upgrades, and compensation will vary based on the type and severity of the loss.
Compensation Breakdown:
- Vehicle Theft: Eligible claimants can receive up to 60% of their vehicle’s value if it was stolen.
- Damaged Vehicles or Personal Property: A flat amount of $3,375 will be provided to those with property damage resulting from theft.
- Insurance Premium Increase: A $375 reimbursement is offered for those who faced higher insurance premiums due to theft attempts.
- Other Related Expenses: Up to $250 will be paid to cover expenses like towing, fines, or repairs related to theft.
- Childcare and Lost Wages: Claimants can receive $250 for childcare or lost wages during the software upgrade process.
Settlement Timeline and Payments
The settlement process has already begun, with claimants able to file as of early 2024. Here is an overview of the timeline for the settlement:
| Event | Date |
|---|---|
| Claim Filing Period Start | Early 2024 |
| Notices Sent to Claimants | March 2024 |
| Final Hearing | July 15, 2024 |
| Payment Start | After court approval |
Once the court finalizes the settlement, payments will be processed and distributed. Compensation will be issued via electronic payment methods, streamlining the process for claimants.
Additional Reimbursements for Non-Upgradable Vehicles
For vehicles that are not eligible for the software upgrades, Kia and Hyundai have offered reimbursement for anti-theft devices. Claimants can receive up to $300 for the purchase of devices such as steering wheel locks or glass breakage alarms. Vehicles that already have pre-installed steering locks are eligible for an additional $250 reimbursement.
Kia-Hyundai Class Action Lawsuit Eligibility
To qualify for the settlement, claimants must meet certain eligibility criteria. The software upgrades are available for vehicles equipped with keyless start technology. These upgrades will be rolled out across all 50 states and the District of Columbia. However, the program is not available in Guam, Puerto Rico, or the US Virgin Islands.
Eligible Vehicle Models and Years:
| Vehicle Model | Model Year |
|---|---|
| Kia Forte | 2011-2021 |
| Kia K5 | 2021-2022 |
| Kia Sedona | 2011-2021 |
| Kia Optima | 2011-2020 |
| Kia Seltos | 2021-2022 |
| Kia Soul | 2011-2022 |
| Kia Rio | 2011-2021 |
| Kia Sportage | 2011-2021 |
| Kia Sedona | 2014 |
Settlement Fund and Compensation Process
The settlement has set aside between $80 million and $145 million to cover claims for all class members. Claimants can begin submitting their forms once the settlement is finalized. The compensation for each eligible individual will include a warranty advantage worth $3,375. Claim processing will commence soon after the final court approval, with funds being distributed accordingly.
The lawsuit seeks to provide financial relief to affected Kia and Hyundai owners, ensuring they are compensated for the security failures that led to increased theft and related damages.
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