$200M Hyundai, Kia Fuel Economy Settlement Nixed by 9th Circ.

On Tuesday, a split three-judge panel of 9th U.S. Circuit Court of Appeals judges rejected a $200 million class action settlement over allegations Hyundai and Kia misrepresented the fuel economy of some of their vehicles.

According to the appellate court opinion, the district court abused its discretion when it concluded that common questions predominated in the class action lawsuit and improperly certified a nationwide Class for settlement purposes.

Further, the appellate panel found that the district court committed a legal error by failing to apply California choice of law rules to the Hyundai fuel efficiency class action lawsuit.

One judge dissented from the panel’s opinion, arguing that she found no error and would affirm the district judge’s order.

The appellate court sent the Hyundai fuel efficiency class action lawsuits back to the district court for further proceedings.

On Nov. 2, 2012, Hyundai informed the public that it was voluntarily decreasing the fuel economy ratings of some of its vehicles. The car company was subsequently hit with several class action lawsuits claiming that Hyundai had misrepresented the fuel economy ratings of some of its vehicles. The plaintiffs claim that they would not have purchased the vehicles or would not have paid as much for the vehicles if they had known at the time that the fuel economy was misrepresented.

The parties eventually reached a settlement, which was preliminarily approved. The deadline to file a claim for the Hyundai fuel economy class action settlement passed on July 6, 2015.

The vehicles named in the Hyundai class action settlement include certain 2013 Accent, Azera, Elantra, Genesis, Santa Fe Sport, Tucson and Veloster vehicles; 2012 Accent, Azera, Elantra, Genesis, Sonata, Tucson, and Veloster vehicles, and 2011 model year Elantra and Sonata Hybrid Electric vehicles.

Under the terms of the proposed Hyundai settlement, Class Members could submit a claim to receive a lump sum payment or other benefits, depending on the year and model of the vehicle they owned or leased.

In June 2015, U.S. District Judge George H. Wu granted final approval to the Hyundai fuel economy class action settlement and certified a nationwide Class of consumers who owned or leased the affected vehicles on or before Nov. 2, 2012.

Several appeals to the Hyundai fuel economy settlement were filed.

Because the 9th Circuit has nixed the Hyundai fuel economy class action settlement, claims will not be paid. The appellate court sent the case back to the district court for further proceedings. Top Class Actions will continue to monitor this case and will update our viewers if a revised class action settlement is reached.

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Class Members are represented by Elaine S. Kusel, Richard D. McCune and Eddie K. Kim of McCuneWright LLP, and Elaine T. Byszewski, Robert B. Carey, John M. DeStefano and Steve W. Berman of Hagens Berman Sobol Shapiro LLP.

The Hyundai, Kia Fuel Economy Class Action Lawsuit is In re: Hyundai and Kia Fuel Economy Litigation, Case Nos. 15-56014, 15-56025, 16-56059, 15-56061, 15-56064, and 15-56067, in the 9th U.S. Circuit Court of Appeals.