Hyundai, Kia Agree To $758M Engine Fire Class Action Settlement

Hyundai and Kia have reached a $758 million settlement with car owners who claim that their vehicles suffer from premature engine failure which may cause the cars to burst into flames.

The 10 consolidated Hyundai, Kia class action lawsuits allege that the car companies knew of the defect, but did not disclose this information to customers.

Under the terms of the proposed class action settlement, Class Members may receive numerous benefits, which includes reimbursement for some out-of-pocket costs and repairs, an extension of the Lifetime Warranty, a rebate, and “goodwill payments.”

According to the motion for approval of the class action settlement, the vehicles that are part of this Class include: “all 2011-2018 and certain 2019 model year Hyundai Sonata vehicles, all 2013-2018 and certain 2019 Hyundai Santa Fe Sport vehicles, all 2014-2015, 2018, and certain 2019 Hyundai Tucson vehicles, all 2011-2018 and certain 2019 Kia Optima vehicles, all 2011-2018 and certain 2019 Kia Sorento vehicles, and all 2011-2018 and certain 2019 Kia Sportage vehicles originally equipped with or replaced with a genuine Theta II 2.0 liter or 2.4 liter gasoline direct injection engine within OEM specifications.”

As part of the settlement, Class Members will receive a Lifetime Warranty which will cover costs related to the damage to the vehicles caused by the malfunction of the engine upon completion of the Knock Sensor Detection System (KSDS) software update.

Also, Hyundai and Kia will reportedly give loaner vehicles to customers while their cars are being repaired under the Lifetime Warranty. If there isn’t a vehicle available for loan, the defendants will reimburse the customers up to $40 per day for car expenses.

“Should any disputes about coverage under the Lifetime Warranty occur, they will be resolved through the Better Business Bureau’s (‘BBB’) alternative dispute resolution process,” the proposed Kia, Hyundai class action settlement states.

In addition, the class action settlement states that any Class Member that obtained a repair for their Class Vehicle prior to receiving a notice of settlement will qualify for a full reimbursement of out-of-pocket expenses.

The proposed motion also states that if warranty coverage was denied in the past, Class Members will now be able to get reimbursed for repairs related to the settlement.

“If a Class member is or was inconvenienced by delays of more than 60 days when obtaining a repair from an authorized Hyundai or Kia dealership, the Class member may submit a claim for a goodwill payment based on the length of delay,” the Hyundai, Kia class action settlement states.

Class Members will receive $50 goodwill payments for delays that last between 61 and 90 days and $25 for each additional 30 days.

Those who experienced the engine defect in their vehicle but decided to sell or trade it in without getting the car repaired will be able to file a claim for reimbursement of the wholesale used vehicle value at the time of loss, along with a $140 goodwill payment.

Hyundai and Kia owners who experienced a vehicle fire due to the alleged defect are able to claim the maximum Black Book value of the car at the time of the fire, plus $140 goodwill payment.

Last, Class Members can obtain a rebate of between $500 and $2,000 if they decide to sell a Class Vehicle in an “arm’s length transaction” if they have experienced an engine failure or engine component fire and purchased a replacement Hyundai or Kia vehicle.

“A rebate is also available to any Class member who, after the notice date, experiences an engine failure or fire in a Class Vehicle, loses faith in their Class Vehicle, and completes all other steps to qualify for the rebate, including the purchase of a replacement Hyundai or Kia vehicle and submission of a claim within 90 days of the engine failure or fire,” the proposed class action settlement states.

Did you purchase a Hyundai or Kia and have problems with the engine? Leave a message in the comments section below.

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The plaintiffs are represented by Steve Berman of Hagens Berman Sobol Shapiro LLP, Matthew D. Schelkopf of Sauder Schelkopf, Adam Gonnelli of The Sultzer Law Group and Bonner Walsh of Walsh PLLC.

The Hyundai, Kia Engine Defect Class Action Lawsuit is In re: Hyundai and Kia Engine Litigation, Case No. 8:17-cv-00838, and Flaherty v. Hyundai Motor Company, et al., Case No. 18-cv-02223, both in the U.S. District Court for the Central District of California.

UPDATE: July 2020, the Hyundai, Kia engine failure class action settlement is now open. Click here to file a claim. 

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