Va. Consumers Fight for More Money in Hyundai Kia Class Action Lawsuit

Virginia consumers attempting to sue Hyundai and Kia for overstating the fuel economy of their vehicles urged a federal judge last week to ignore Hyundai’s “intimidation” tactics and allow them to remove themselves from the federal consolidated action and pursue their claims under Virginia law where they can pursue more money.

In February 2013, 12 Hyundai Kia class action lawsuits were consolidated into multidistrict litigation over allegations that Hyundai Motor America and Kia Motors America Inc. exaggerated the fuel efficiency in many of their vehicles. Cases in other jurisdictions followed suit and joined the MDL. Most of the claims arose after the Environmental Protection Agency (EPA) announced that Hyundai and Kia had overstated the MPG on many of their 2011-2013 year models. The EPA indicated that Hyundai and Kia had deviated from standard procedure in calculating gas mileage in the car and the deviations ranged from one to six miles per gallon.

In December of 2013, Hyundai and Kia announced that they had reached a $400 million class action settlement to resolve the claims, but earlier this month a group of Class Members filed an objection to the proposed Hyundai Kia settlement saying it raised “red flags” and Hyundai should pay out cash rather than requiring Class Members to complete claim forms.

The Virginia plaintiffs claim that Hyundai should be “held accountable under Virginia Law for its massive deceptive advertising campaign misrepresenting that the Elantra obtained 40 MPG when it only gets 32 MPG.”  The Virginia plaintiffs claim that a Virginia law, the Gentry case, provides them the “unconditional right” to a full refund of the purchase price of the vehicles and should be applied to Class Members who are residents of Virginia. The plaintiffs argue that separating from the Hyundai Kia MDL is proper because the Virginia plaintiffs had brought claims after Hyundai’s announcement about a class action settlement proposal. The Virginia plaintiffs claim that post-announcement purchasers are excluded from the MDL settlement so their claims should remain separate.

Hyundai filed a response alleging that the attorney for the Virginia plaintiffs has committed professional misconduct when he filed individual cases in Virginia and that there was no legal basis to remand the case back to Virginia.

The Virginia plaintiffs argued that when it became clear that the class would not be certified for the use of Gentry, filing complaints in the State of Virginia became “manifestly proper.” The Virginia plaintiffs also accused Hyundai of intimidation tactics, citing a letter Hyundai sent threatening sanctions after their attorney filed the individual lawsuits. They also argue that threatening sanctions was improper, saying “[i]f a lawyer truly believes a party or another lawyer has violated a Federal Judge, they inform the Federal Judge immediately and seek relief and a rule to show cause why the offender should not be held in contempt.”

The Virginia plaintiffs are represented by James B. Feinman and Andrew D. Finnicum of the Law Office of James B. Feinman.

The settlement class is represented by Elaine T. Byszewski, Robert B. Carey and Steve W. Berman of Hagens Berman Sobol Shapiro LLP, and Richard D. McCune of McCuneWright LLP, among many others.

The Hyundai Kia MPG 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.