Plaintiffs Wait for Approval in $890 Million Hyundai-Kia Engine Settlement

After long months of settlement negotiation, drivers have asked a California federal judge for final approval in an approximately $890 million Hyundai-Kia Engine settlement agreement to bring an end to claims that the companies sold defective engines that could unexpectedly catch fire.

The consolidated consumer vehicle defect class action lawsuits alleged that for almost ten years, both Hyundai and Kia knowingly sold vehicles equipped with defective engines. According to the lawsuits, the manufacturers equipped certain vehicles with Theta II 2.0-liter or 2.3-liter gasoline direct injection engines, which plaintiffs alleged could seize, fail, or even catch fire.

The vehicle manufactures failed to properly disclose these effects, they said, and instead issued inadequate technical service bulletins and limited safety recalls over the problem for just some of the affected vehicles. In short, the plaintiffs, claimed, the manufacturers never fixed the underlying defect.

In 2017, the National Highway Traffic Safety Administration launched an investigation into reports of engine failure in certain Hyundai and Kia vehicles. In April 2019, after receiving complaints about fires in more than 3,000 of these vehicles, the NHTSA expanded their probe.

The probe was expanded six months after prompting from Jason Levine, executive director of the Center for Auto Safety, who urged fast action.

The Hyundai-Kia engine settlement would bring an end to about two years of negotiation. The settlement was conditionally approved back in May after the preliminary deal was announced in Oct. 2019.

The settlement provides “significant relief to consumers,” the lead plaintiffs note, including:

• a Lifetime Warranty extension
• free installation of the Knock Sensor Detection System to prevent engine failure
• free diagnostic inspection following final approval
• full reimbursement for certain out-of-pocket repairs and costs
• payments for inconvenience due to repair delays
• a rebate program
• reimbursement for sold or traded-in Class Vehicles with a failed engine and Class Vehicles destroyed by fire

The named plaintiffs, who represent several consolidated class action lawsuits involved in the settlement, are satisfied with the results of their negotiations.

“The settlement achieved here offers the class virtually everything plaintiffs hoped to recover through the litigation,” the consumers said.

Hyundai has also said that overall, it is pleased with the settlement, which it says “offers several attractive options to the relatively small number of customers who experienced a reliability issue with the class vehicles, and acknowledges our sincere willingness to take care of impacted customers.”

In an Oct. 2018 statement, Kia’s executive vice president John Yoon had said that “as the latest demonstration of Kia’s commitment to vehicle quality and customer satisfaction, this resolution is the result of good-faith efforts among all parties to resolve owner concerns.”

Though the settlement has been estimated at about $890 million, it could be worth up to $1.3 billion, according to the court filing. The settlement deal includes full reimbursements for repairs along with extended warranties.

The Hyundai-Kia engine settlement calls for more than just this monetary agreement. It also calls for the manufacturers to install an updated safety feature to its vehicles, called the Knock Sensor Detection System. This system warns drivers if there’s an impending risk of engine stalling. Class members are also set to receive a lifetime warranty on the engine short block—the rotating assembly with the alleged defect—that would cover all costs associated with future inspections and repairs.

The engine settlement will also reimburse class members for past repair expenses, and any class members who experienced engine failure or a fire are eligible for additional payments.

Class vehicles include:

• 2011–2018 and certain 2019 model year Hyundai Sonata vehicles
• 2013–2018 and certain 2019 Hyundai Santa Fe Sport vehicles
• 2014–2015, 2018, and certain 2019 Hyundai Tucson vehicles
• 2011–2018 and certain 2019 Kia Optima vehicles
• 2011– 2018 and certain 2019 Kia Sorento vehicles
• 2011–2018 and certain 2019 Kia Sportage vehicles

In total, the settlement covers about 4 million vehicles—approximately 2.3 million Hyundai vehicles and 1.8 million Kia vehicles.

A court hearing on final approval of the Hyundai-Kia engine settlement is set for Nov. 13, 2020.

If you have owned or leased a vehicle affected by a safety defect, you may be able to file a lawsuit and pursue compensation.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

The Hyundai-Kia Engine Settlement is Case No. 8:17-cv-00838, in the U.S. District Court for the Central District of California.

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This article is not legal advice. It is presented
for informational purposes only.