Hyundai, Kia Defective Engine Class Action Settlement Approved

Kia and Hyundai’s class action settlement which resolves claims that certain vehicles have engines that can catch fire, has been granted preliminary approval.

The decision to grant preliminary approval to the Kia, Hyundai settlement was made by U.S. District Judge Josephine L. Staton in California. The judge noted that the settlement effectively provided Class Members with all of the relief that they had asked for.

In sum, she determined that the settlement is “fair, adequate, and reasonable,” and therefore it meets the legal requirements for approval.

The judge did stress that some details of the settlement had yet to be ironed out — including the crucial detail of the total settlement amount. However, Kia and Hyundai have reportedly designated $758 million to handle the allegations. 

The settlement will certify a Class of a whopping 4.1 million car owners who bought a number of allegedly affected vehicles.

Included vehicles are “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.”

These drivers will be eligible for multiple benefits including reimbursement for some out-of-pocket costs incurred in dealing with the alleged defect, if a Class Member was previously denied repairs under their warranty, along with other payments to compensate Class Members.

Class Members are also eligible for a lifetime warranty extension and access to a rental vehicle while their car is being repaired.

The judge determined that benefits were quite valuable to consumers. In asking for a preliminary approval for the settlement, the customers noted that the settlement provided considerable benefits, particularly when weighed against the costs and risks of continuing to litigate the engine defect multidistrict litigation.

The car makers have not admitted any liability in agreeing to settle, but determined that reaching a settlement with customers was preferable over continuing to litigate.

Class Representatives will receive up to $5,000 for their role in the Kia, Hyundai class action lawsuit, per the terms of the settlement.

The judge determined that this benefit amount was low enough that it did not indicate a conflict of interest, so the settlement could receive preliminary approval. Additionally, the judge took this to mean that the lead plaintiffs were indeed adequate Class Representatives.

The Kia, Hyundai multidistrict litigation was created from combining 10 initially separate engine defect class action lawsuits that made similar claims.

Customers claimed that Kia and Hyundai vehicles possessing the Theta II gasoline direct injection engine were defective because the engine possessed a defect that could cause it to burst into flame, putting the lives of drivers and others at risk.

Allegedly, Hyundai and Kia were aware of the defect, but failed to disclose it to customers. The plaintiffs also criticized the companies’ choice to not issue recalls until January 2018, despite knowing about the defect for around two years.

The drivers explain that about two years before the recall was implemented, the National Highway Traffic Safety Board conducted an investigation into the issue, after customers had reported that the engines of their vehicles burst into flames.

The plaintiffs stress that the recall was implemented two months after the Senate conducted a Commerce Committee Hearing to address the issue and asked executives from Hyundai and Kia to attend.

Allegedly, the company knowingly put profits ahead of customers’ safety and general best interest.

Have you ever purchased a vehicle that was defective? Share your experiences in the comments section below.

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

The Hyundai Engine Defect Multidistrict Litigation is In re: Hyundai and Kia Engine Litigation, Case No. 8:17-cv-00838, in the U.S. District Court for the Central District of California. 

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

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