Case Update: A proposed settlement of a class-action lawsuit reached on May 18, 2023 brings benefits valued at more than $200 million to owners of Hyundai and Kia vehicles rendered vulnerable to theft following the automakers’ failure to install basic security measures, according to lead class counsel at Hagens Berman, Baron & Budd, Fegan Scott and Humphrey, Farrington & McClain who the court-appointed to lead this case.
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On September 9, 2022, FeganScott filed a nationwide class-action lawsuit on behalf of Kia and Hyundai vehicle owners claiming the automobile manufacturers sold millions of vehicles that do not contain a standard safety component to prevent car theft.
The cars’ design flaw revolves around engine immobilizers, an anti-theft device that can prevent vehicles from starting unless a verified code is received, inhibiting the vehicle from being hot-wired or started by any means other than an authorized key.
Incidents of theft involving Kia and Hyundai vehicles have been steadily on the rise. After a group of teenagers in Milwaukee, WI discovered that immobilizers were missing in certain Kia vehicles, the theft rate of said vehicles increased by almost 3,200% year-over-year in the first six months of 2021.
In recent months, Kia and Hyundai acknowledged the existence of the design defect yet have failed to issue a safety recall.
The lawsuit seeks to represent all current and former owners of 2011-2022 Kia vehicles as well as 2011-2022 Hyundai vehicles that do not contain an engine immobilizer and aims to hold Kia responsible for damages incurred by owners as a result of the motor company’s deceptive business practices.
On December 13, 2022, over a dozen related cases across various districts were transferred to the U.S. District Court for the Central District of California and assigned to the Honorable James V. Selna. The case is now referred to as an MDL (Multi-District Litigation) and was given the caption: In re: Kia Hyundai Vehicle Theft Marketing, Sales Practices, and Products Liability Litigation, No. 8:22-ml-03052.
On February 9, 2023, Ms. Fegan was one of four attorneys appointed by Judge Selna to the Plaintiffs’ Consumer Class Action Leadership Committee, which represents all consumers in the MDL.
On April 10, 2023, the Plaintiffs’ Consumer Class Action Leadership Committee filed a robust 897-page consolidated complaint, which details the alleged Theft Prone Defect.