Hyundai, Kia Fuel Economy Class Action Settlement Close to Approval

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On Thursday, a California federal judge suggested he was close to approving a class action settlement that would resolve allegations Hyundai Motor America and Kia Motors America overstated the fuel efficiency of hundreds of thousands of vehicles, finding that although he approved the overall structure of the settlement, the claims process needed some revision.

At the June 26 hearing, U.S. District Judge George H. Wu denied the plaintiffs’ motion seeking preliminary approval of the class action settlement. He informed the parties that while he was in favor of the proposed settlement’s structure, he was concerned about the claims process and the potential maximum value of the claims. Once he receives further information about these concerns, he will make a decision about whether to grant preliminary approval to the fuel economy class action settlement.

Under the terms of the proposed class action settlement, current owners and lessees of the affected vehicles would be eligible to receive benefits worth between $140 and $590 for Hyundais and between $50 and $1,420 for Kias. These benefits could take the form of a prepaid debit card, a rebate on a newly purchased vehicle, or a dealership services credit.

Owners or lessees of Hyundai Sonata Hybrids, Elantras, Accents and Velosters would qualify for an additional payment of $50 to $100 under the terms of the proposed class action settlement because of Hyundai’s massive nationwide advertising campaign that boasted inaccurate estimates for the fuel economies of those vehicles.

An attorney representing Class Members who objected to the proposed fuel economy class action settlement noted that claim forms should be unnecessary because the vehicle manufacturers can easily identify Class Members based on their records and send payments to Class Members who do not opt out. Further, the attorney expressed concern that the proposed multi-page claim form was unnecessarily complex and hard to follow. Judge Wu disagreed, finding that as long as the claim forms are clear and functional, filing a claim for the Hyndai and Kia fuel efficiency settlement should not be overly burdensome.

The first Hyundai fuel economy class action lawsuit was filed in July 2012 by a Hyundai Elantra owner who accused the auto maker of misleading consumers about the vehicle’s fuel economy. In November 2012, the U.S. Environmental Protection Agency announced that Hyundai and Kia overstated the gas mileage on as many as 900,000 vehicles. This announcement led to the filing of more class action lawsuits against the car manufacturers. The fuel efficiency lawsuits were eventually consolidated in multidistrict litigation.

Hyundai and Kia have announced that they would adjust the advertised fuel economies of all of the vehicle models in question. The car makers also launched a “Voluntary Reimbursement Program” to compensate owners and lessees. For more information about this mileage reimbursement program, visit www.hyundaimpginfo.com or www.kiampginfo.com.

Keep checking www.TopClassActions.com for updates about the Hyundai and Kia fuel economy class action settlement. To receive free alerts, sign up for our free newsletter and/or mark this article as a “Favorite” using your free Top Class Actions account.

Class Members are represented by Elaine T. Byszewski, Robert B. Carey and Steve W. Berman of Hagens Berman Sobol Shapiro LLP and Richard D. McCune of McCune Wright LLP, among others. The objectors are represented by Harvey Rosenfield, Pamela Pressley and Laura Antonini of Consumer Watchdog.

The Hyundai, Kia Fuel Economy Class Action Lawsuit is Hyundai and Kia Fuel Economy Litigation, Case No. 2:13-ml-02424, in the U.S. District Court for the Central District of California.

UPDATE 1: A settlement has been reached in a class action lawsuit alleging Hyundai Motor America and Hyundai Motor Company misrepresented the fuel economy of certain Hyundai vehicles. Consumers who purchased or leased certain Hyundai vehicles could be eligible for a cash payment or other benefits. Learn more at the Hyundai Fuel Economy Settlement.

UPDATE 2: As of Apr. 11, 2016, six different appeals have been filed concerning the Hyundai Fuel Economy Settlement. Until the Court resolves those appeals, the Claims Administrator is unable to mail out settlement funds.