Hyundai Sonata Defective Engine Class Action Ends in $8.5M Settlement

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

A federal judge says she will grant final approval to a proposed Hyundai Sonata defective engine class action settlement.

U.S. District Judge Beth Labson Freeman signaled during a fairness hearing that she would sign off on the proposed $8.5 million settlement, resolving class action claims that certain models of Hyundai Sonata were prone to engine failure.

The parties agreed to the settlement in July of this year and submitted it to the court for approval. Judge Freeman expressed strong confidence in the settlement, describing it as “excellent” and “a good deal for the class.” An order formally approving the settlement is forthcoming after the new year, the judge said.

Under terms of the settlement, Hyundai agrees to reimburse affected owners of Hyundai Sonata cars from model years 2011 through 2014 for costs related to the alleged defect with those vehicles’ 2.0- or 2.4-liter Theta II engines. The settlement will cover costs of repair and replacement of the engine as well as related costs like towing expenses and rental of replacement cars.

The company is also doubling the warranties on all new and pre-owned Hyundai Sonatas from five years to ten and from 60,000 miles to 120,000. For Class Members whose Hyundai Sonata is more than 120,000 miles old, the car maker offers a 90-day window to bring it in for any needed repairs regardless of mileage.

Hyundai reports that it has already paid out more than $8.5 million to about 3,000 claimants under this particular settlement. Company attorneys say the total payout can’t be reliably predicted because some Hyundai Sonata models don’t suffer from the engine failure at issue and others generate only minor trouble.

Although 41 Class Members have objected to the settlement, Judge Freeman noted that the number of objectors is small relative to the total size of the Class. More than 200 other Class Members opted out of the settlement.

Named plaintiff Elizabeth Mendoza filed this Hyundai Sonata class action lawsuit in the spring of last year. She alleged the 2.4 liter Theta II engine installed in certain models of Hyundai Sonata had a defect that caused them to fail – a defect that Hyundai knew about but failed to properly address.

Mendoza says the engine in her own 2011 Hyundai Sonata failed in October 2014 when one of the pistons blew out. A Hyundai dealership told her that the estimated $4,500 repair was not covered under the car’s warranty.

Her Hyundai Sonata class action lawsuit blames the defect on faulty connecting rod bearings. When these bearings fail, they allegedly generate metal debris that gets distributed throughout the engine via the engine’s oil, leading to catastrophic engine failure.

Mendoza and the plaintiff Class are represented by Eric H. Gibbs and David Stein of Gibbs Law Group LLP and by Joseph G. Sauder and Matthew D. Schelkopf of McCuneWright LLP.

The Hyundai Sonata Defective Engine Class Action Lawsuit is Elizabeth Mendoza v. Hyundai Motor Co. Ltd., et al., Case No. 5:15-cv-01685, in the U.S. District Court for the Northern District of California.