Two Korean automakers have reached a $200 million settlement in a federal class-action lawsuit alleging that a security loophole that went viral on social media left their vehicles vulnerable to theft, according to lawyers. of car manufacturers and owners.
Vehicles made by Hyundai Motor America and Kia America Inc. that did not have push-button start became part of a TikTok challenge because they were more vulnerable to damage. Viral videos showed how Hyundai and Kia vehicles could be started using a common USB charging cable or a similar metal object.
The settlement extends to about 9 million people with Kia or Hyundai vehicles made between 2011 and 2022, attorneys said Thursday in a news release to vehicle owners and manufacturers. The settlement is valued at up to $200 million, depending on the number of customers who file claims.
During the 11-year span, automakers did not equip cars with an immobilizer, an anti-theft tool that prevents “most vehicles from starting unless a code is transmitted from the vehicle's smart key,” according to the statement. of press.
Relief for affected owners will come as soon as possible, said Steve Berman, managing partner of Hagens Berman and chairman of the main committee representing affected vehicle owners in the lawsuit.
“Our goal in finalizing this agreement was to not leave anyone in the dark,” Berman said. “The owners of these cars have already experienced enough distress and we are working to reach a settlement that covers many types of losses, from those who were lucky enough to never have their prone-to-theft car stolen, to those whose stolen cars were completely destroyed. . due to the negligence of Hyundai and Kia.”
In a statement, Hyundai Chief Legal Officer Jason Erb said the settlement is aimed at curbing the rise in attacks on vulnerable models.
“Customer safety remains a top priority and we are committed to continuing software update installations and steering wheel lock distribution to help prevent theft,” Erb said.
Kia spokesman James Bell said in a statement that the company is committed to “working with authorities to combat auto theft and the role social media plays in encouraging it.”
The settlement includes compensation of up to $145 million for out-of-pocket losses for affected vehicle owners. Owners can also receive reimbursement for expenses such as towing costs; fees and taxes incurred if the affected car was lost or stolen, crashed or never recovered; and speeding tickets, red light tickets, or other penalties or fines resulting from a stolen vehicle.
Affected Kia and Hyundai owners are also eligible for a software update to fix the cars' missing immobilizer issue, which includes more than a dozen Kia and Hyundai models. Owners whose cars are not compatible with the upgrade can receive up to $300 to install security features including a glass break alarm or anti-theft system, steering wheel lock or other theft deterrent tools.
According to the press release, a resolution website for owners of affected vehicles will soon be online.
TikTok videos of vehicles being stolen have gone viral on social media websites over the past year.
Many local media outlets have covered the issue, citing the mostly anonymous “Kia Boys” as the culprits, especially in Milwaukee, where it appears the trend may have started or spread further.
The Los Angeles Police Department said last year that Kia and Hyundai vehicles accounted for about 20% of stolen cars in August 2022, likely due to the Tik Tok challenge.
Times staff writer Grace Toohey contributed to this report.
