In the matter of In re Kia Hyundai Vehicle Theft Marketing, Sales, Practices, and Products Liability Litigation, Case No. 22-ml-03052. (USDC, Central District of CA, November 15, 2023) U.S. District Judge James Selna in Santa Ana, California rejected arguments that it was unfair to let insurers recover because they had collected premiums and assumed theft risks, and did not specifically identify which drivers were victims.
Selna also found sufficient arguments that the lack of anti-theft devices on 14.3 million Hyundais and Kias made from 2011 to 2022 made thefts foreseeable, despite the South Korean automakers’ assurances that their cars were safe. The complaint, he said, supports the idea that thefts were a “predictable consequence” of Hyundai’s and Kia’s actions.
“Though (the insurers) have received premiums, defendants allegedly failed to include any anti-theft device as required under federal regulations,” Selna wrote. “Thus, the level of fault is almost entirely on the defendants.”
Earlier, on Oct. 31, Selna granted preliminary approval to a class action settlement with Hyundai and Kia covering more than 9 million vehicles. That settlement has been valued at $200 million, with up to $145 million of the payments going to drivers. Selna also oversees litigation by municipalities seeking to recoup public safety and other costs tied to vehicle thefts.
Hyundai was disappointed with the decision because its dealers have installed anti-theft software on more than 1 million vehicles prompted by TikTok videos showing how to steal cars that lack push-button ignitions and immobilizers in a matter of seconds