Current:Home > ScamsKia and Hyundai agree to $200M settlement over car thefts-LoTradeCoin
Kia and Hyundai agree to $200M settlement over car thefts
View Date:2024-12-23 20:14:43
Kia and Hyundai have agreed to a class-action lawsuit settlement worth about $200 million over claims that many of the Korean automakers' cars are far too vulnerable to theft, according to lawyers for the companies and the owners.
The settlement covers some 9 million owners of Hyundai or Kia vehicles made between 2011 and 2022 and have a traditional "insert-and-turn" steel key ignition system, lawyers for the owners said in a press release on Thursday.
Compensation to owners includes up to $145 million in out-of-pocket losses that will be distributed to people who had their vehicles stolen. Affected owners can be reimbursed up to $6,125 for total loss of vehicles, and up to $3,375 for damages to the vehicle and personal property, as well as insurance-related expenses.
Car thefts of the affected models, using a hack popularized on social media, have spiked in recent months. The growing number of thefts have coincided with the spread of a TikTok "challenge" that shows people how to steal Kia and Hyundai vehicles that lack basic security features. The trend has been linked to eight deaths, according to the National Highway Traffic Safety Administration.
The car companies said in February that they would begin rolling out software upgrades to the 8.3 million U.S. vehicles that lack engine immobilizers — a feature that prevents a car from starting unless it receives an electronic signal from a key.
Since then, pressure on the company to do more to curb the thefts has only mounted.
Citing the uptick in theft, several cities including Seattle, St. Louis, Mo., Columbus, Ohio, and Baltimore have sued Kia and Hyundai. Last month, attorneys general in 17 states and the District of Columbia urged the NHTSA to issue a mandatory recall of the vehicles in question.
As part of the agreement, the anti-theft software will now be added to vehicles automatically at any dealership service appointment, the companies said in a news release.
"We appreciate the opportunity to provide additional support for our owners who have been impacted by increasing and persistent criminal activity targeting our vehicles," said Jason Erb, Hyundai Motor North America's chief legal officer, in a statement.
veryGood! (669)
Related
- Drone footage captures scope of damage, destruction from deadly Louisville explosion
- What's plaguing Paris and why are Catholics gathering in Rome? Find out in the quiz
- The Nobel Peace Prize is to be announced in Oslo. The laureate is picked from more than 350 nominees
- Police issue arrest warrant for 19-year-old acquaintance in death of Philadelphia journalist
- Martin Scorsese on the saints, faith in filmmaking and what his next movie might be
- A Florida man who shot down a law enforcement drone faces 10 years in prison
- Ancient gold treasures depicting Norse gods unearthed in Norway: A very special find
- Appeals panel won’t revive lawsuit against Tennessee ban on giving out mail voting form
- Caitlin Clark shanks tee shot, nearly hits fans at LPGA's The Annika pro-am
- An aid group says artillery fire killed 11 and injured 90 in a Sudanese city
Ranking
- Stressing over Election Day? Try these apps and tools to calm your nerves
- Health care strike over pay and staff shortages heads into final day with no deal in sight
- The 2024 Girl Scout cookie season will march on without popular Raspberry Rally cookies
- A Florida man who shot down a law enforcement drone faces 10 years in prison
- College football Week 12 expert picks for every Top 25 game include SEC showdowns
- Stricter state laws are chipping away at sex education in K-12 schools
- Mortgage rates haven't been this high since 2000
- German prosecutors say witness evidence so far doesn’t suggest a far-right leader was assaulted
Recommendation
-
Horoscopes Today, November 9, 2024
-
Want flattering coverage in a top Florida politics site? It could be yours for $2,750
-
German prosecutors say witness evidence so far doesn’t suggest a far-right leader was assaulted
-
A Hong Kong man gets 4 months in prison for importing children’s books deemed to be seditious
-
Horoscopes Today, November 12, 2024
-
Buy now pay later apps will get heavy use this holiday season. Why it's worrisome.
-
French judges file charges against ex-President Nicolas Sarkozy in a case linked to Libya
-
NGO rescue ship saves 258 migrants off Libya in two operations