A U.S. District Judge in California has rejected motions by Hyundai and Kia to dismiss a series of lawsuits brought by hundreds of insurance companies. The insurers are seeking to recover over $1 billion in losses related to the theft of vehicles, which they claim were more vulnerable due to a lack of anti-theft devices.
In a ruling issued on November 15, U.S. District Judge James Selna of Santa Ana, California, dismissed arguments that it was unfair for insurers to seek recovery, given that they had collected premiums and assumed the risk of theft. He also found sufficient evidence that the absence of immobilizers on 14.3 million Hyundai and Kia vehicles manufactured from 2011 to 2022 made thefts foreseeable. The judge stated that the complaint supports the idea that these thefts were a “predictable consequence” of the automakers’ actions.
“Though (the insurers) have received premiums, defendants allegedly failed to include any anti-theft device as required under federal regulations,” Selna wrote in his decision. “Thus, the level of fault is almost entirely on the defendants.”
Hyundai expressed its disappointment in the ruling and indicated it looked forward to a dismissal. The company also noted that its dealerships have installed anti-theft software on over 1 million vehicles. Kia, for its part, maintained its confidence in the legal claims’ lack of merit, emphasizing that its vehicles complied with federal safety and theft-protection standards. Both companies also stated they are cooperating with law enforcement regarding the thefts.
The lawsuits stem from the widespread criticism and litigation the companies faced for not including immobilizers on most of their vehicles. The thefts were significantly amplified starting in 2021, fueled by social media videos, particularly on TikTok, that demonstrated how easily the vehicles, lacking push-button ignitions and immobilizers, could be stolen. Judge Selna had previously given preliminary approval to a class action settlement with Hyundai and Kia on October 31, covering over 9 million vehicles. That settlement is valued at $200 million, with up to $145 million allocated for drivers. The judge is also overseeing litigation by municipalities seeking to recoup costs related to public safety.
The case is In re Kia Hyundai Vehicle Theft Marketing, Sales, Practices, and Products Liability Litigation, located in the U.S. District Court, Central District of California, under case number 22-ml-03052.
