Hyundai & Kia Vehicle Theft Defect Class Action & Settlement

Hyundai Motor America and Kia America face consolidated class action litigation after a design defect in millions of their vehicles—the absence of a standard engine immobilizer—made the cars trivially easy to steal using only a USB cable and a technique popularized in a viral 'Kia Challenge' trend on TikTok and YouTube beginning in 2021. The flaw affected a large proportion of Hyundai and Kia vehicles manufactured between 2011 and 2022 that were equipped with traditional key ignitions rather than push-button start systems. Law enforcement agencies across the country reported dramatic spikes in thefts of Hyundai and Kia vehicles; in some cities, these two brands accounted for the majority of all auto thefts. Several of the stolen vehicles were subsequently involved in fatal accidents, drawing intense public scrutiny and legislative attention.

In January 2024, Hyundai and Kia reached a $200 million class action settlement to compensate affected owners and lessees. The settlement provided tiered reimbursements for theft losses, insurance premium increases, and costs of purchasing and installing anti-theft devices, as well as free software updates and steering wheel locks for eligible vehicles. Claims could be submitted through January 13, 2025. Separately, both automakers faced investigations and lawsuits from dozens of cities and municipalities seeking to recover the costs of responding to the surge in thefts, and the National Highway Traffic Safety Administration (NHTSA) opened a formal investigation into the defect. The litigation has prompted broader industry debate about whether engine immobilizers should be mandated as standard equipment in all new U.S. vehicles.