In a recent legal development, an American judge in the state of California dismissed claims made by Hyundai and Kia seeking to reject a lawsuit filed by hundreds of insurance companies. The lawsuit aims to recover over a billion dollars, representing compensation to drivers whose vehicles were stolen or damaged due to a surge in car thefts linked to social media videos promoting the theft of certain Korean car models.
Judge James ruled against the arguments presented by Hyundai, asserting that insurance companies have the right to pursue compensation. The company had contended that insurers were not entitled to claim compensation as they had received premiums from customers and, under the terms of the contract, were responsible for compensating for theft cases where the insured drivers were not identified.
Furthermore, the judge acknowledged the plaintiffs’ claims that the absence of anti-theft devices in approximately 14.3 million Hyundai cars produced between 2011 and 2022 made the thefts predictable. Despite assurances of vehicle safety, the judge asserted that the lack of theft-prevention devices violated federal regulations, placing the blame squarely on the manufacturer.
Hyundai expressed disappointment in the court’s decision, emphasizing that it awaits the final ruling. The company also highlighted its efforts, stating that its agencies had installed theft prevention programs in over a million cars.
Legal representatives for the insurance companies, the plaintiffs in this case, refrained from commenting on the judge’s decision.
Notably, Hyundai and Kia faced substantial criticism and numerous lawsuits for its failure to install anti-theft devices, a standard feature in many other vehicle types. The rise in thefts of Hyundai cars in 2021 was exacerbated by social media videos, particularly on TikTok, showcasing easy methods to steal cars lacking theft prevention systems. In response, Judge James Selna granted preliminary approval for a class-action settlement covering over 9 million Hyundai vehicles, valued at approximately $200 million. Of this settlement, up to $145 million is designated for payments to affected drivers.
