“Hyundai and Kia settle $200 million class action lawsuit over car thefts”

Hyundai Motor and Kia Corp. have agreed to settle a $200 million class action lawsuit from consumers over theft of the two Korean automakers, attorneys for the auto owners and the two companies announced Thursday.

The companies said in February that they would provide a software update for about 8.3 million vehicles in the United States that are not equipped with an immobilizer system, with the aim of helping to reduce the growing number of car thefts, using a method popularized by TikTok and other social media.

Lawyers for the car owners said the settlement includes about nine million affected and includes up to $145 million in compensation for the direct losses of owners whose cars were stolen.

Hyundai and Kia said they would compensate owners “whose cars were stolen or damaged, in addition to payments to refund insurance deductions, increase premiums and other losses related to theft.”

And for consumers whose cars can’t accommodate the security software upgrades, the companies will offer up to $300 toward the purchase of steering wheel locks and other theft prevention gadgets.

Regulators said in February that TikTok videos showing how cars without a push-button start and without an immobilizer have led to at least 14 crashes and eight deaths in the United States.

The settlement covers owners of Hyundai and Kia cars produced between 2011 and 2022 that operate with a steel key fob. The settlement includes payments for total loss of the vehicle up to $6,125, damage to vehicles and personal property up to $3,375, and insurance-related expenses.