Class Action: Hyundai Failed to Disclose Sonata Engine Defect

Last week, Hyundai Motor America Inc. was hit with a class action lawsuit in California federal court alleging that the motor company failed to disclose a defect in the engine of its 2011 to 2015 Sonata models.

Lead plaintiff Beth Graham, a Sonata owner, alleged in her class action lawsuit that Hyundai did not disclose that the engine in the Sonata model was manufactured with a defect in its rotating assembly that causes “sudden and catastrophic engine failure.”

“The rotating assembly cannot withstand the long-term stress generated within the Sonata’s combustion chambers and fails within the useful life of the engine (most failures occur between 60,000 to 90,000 miles),” the Hyundai class action lawsuit alleges. “When the rotating assembly fails, it does so without warning and causes the engine to seize suddenly—leaving Sonata drivers without power and struggling to maneuver the vehicle to safety.”

Graham further alleges that in addition to concealing this defect from Sonata owners and failing to issue a recall, Hyundai improperly denied warranty coverage to owners whose engines failed due to the defect. “Hyundai has concealed the problem from consumers and implemented a concerted practice of denying warranty coverage for failed engines,” the engine defect class action lawsuit alleges.

“Hyundai tells Sonata owners that they must submit a complete record of the vehicle’s maintenance history before making a warranty claim—even though it knows that Sonata engines fail regardless of owner maintenance and that the faulty rotating assembly is responsible,” Graham alleges in the Hyundai class action lawsuit. “For those warranty claims that are submitted, Hyundai’s practice is to deny them based on inadequate maintenance records or improper maintenance,” she continues. “Hyundai denies that engine failures are widespread in Sonata vehicles and blames its customers for the problem—forcing them to pay as much as $10,000 for an engine replacement.”

Graham also alleges in her class action lawsuit that Hyundai was or should have been aware of the defect. “Hyundai is, of course, currently aware that Sonata engines are seizing in record numbers,” the Hyundai class action lawsuit alleges. “It provides Hyundai dealerships with replacement engines and carefully tracks both part sales and the type of repairs conducted by its dealerships,” Graham further explains.

“In addition, many Sonata owners have complained to their dealership and to Hyundai’s corporate office—to no avail,” the Hyundai class action lawsuit continues. “The strong likelihood is that Hyundai knew of the rotating assembly defect much earlier, likely before Class Vehicles were ever released to the public.” Graham further points out that discovery and review of Hyundai’s internal records will be necessary to know whether Hyundai was aware of the defect, “but the rotating assembly defect is one that would typically be discovered during standard pre-release testing,” she contends.

Graham alleges that Hyundai violated various state laws and class members are entitled to costs and damages. The proposed Class includes “[a]ll persons who purchased or leased a 2011-2015 Hyundai Sonata within the United States.”

Graham is represented by Eric H. Gibbs, Dylan Hughes, and Steve Lopez of Gibbs Law Group LLP.

The Hyundai Sonata Engine Defect Class Action Lawsuit is Graham v. Hyundai Motor America Inc., Case No. 5:15-cv-02071, in U.S. District Court for the Northern District for California.