Several hundred insurers seeking to recover more than $1 billion from Hyundai and Kia have had their litigation claims upheld by a U.S. judge. The insurers are attempting to recoup losses suffered by drivers whose vehicles were stolen or damaged during a theft spree inspired by social media. U.S. District Judge James Selna in Santa Ana, California, dismissed arguments by the automakers that it was unfair for the insurers to seek recovery, as they had already collected premiums and assumed theft risks. The judge also found merit in the claim that the lack of anti-theft devices on the vehicles made the thefts foreseeable, despite assurances from Hyundai and Kia that their cars were safe. Selna stated that the defendants were primarily at fault for failing to include the necessary anti-theft devices as required by federal regulations.
Hyundai expressed disappointment with the judge’s decision and stated that it looks forward to a potential dismissal of the case. The company also mentioned that its dealers have installed anti-theft software on over 1 million vehicles. Kia, on the other hand, remained confident that the legal claims against them had no merit and emphasized that their vehicles comply with federal safety and theft-protection standards. Both automakers asserted that they are cooperating with law enforcement regarding the thefts.
The insurers’ lawyers did not provide any comment on the matter. Hyundai and Kia have faced significant criticism and numerous lawsuits due to their failure to install anti-theft devices known as immobilizers on most of their vehicles. The increase in vehicle thefts in 2021 was further exacerbated by TikTok videos demonstrating how to steal cars without push-button ignitions and immobilizers in a matter of seconds.
In October, Judge Selna granted preliminary approval to a class action settlement involving more than 9 million vehicles from Hyundai and Kia. The settlement, valued at $200 million, will potentially allocate up to $145 million to affected drivers. Additionally, Judge Selna is overseeing litigation by municipalities seeking reimbursement for public safety and other costs linked to the thefts.
The case is titled In re Kia Hyundai Vehicle Theft Marketing, Sales, Practices, and Products Liability Litigation, and it is being heard in the U.S. District Court for the Central District of California.
