Kia, Hyundai Settle Class-action Lawsuit after a Rash of Thefts Due to Security Flaw

FILE - A line of 2022 Santa Fe SUV's sit outside a Hyundai dealership Sunday, Sept. 12, 2021, in Littleton, Colo. (AP Photo/David Zalubowski, File)
FILE - A line of 2022 Santa Fe SUV's sit outside a Hyundai dealership Sunday, Sept. 12, 2021, in Littleton, Colo. (AP Photo/David Zalubowski, File)
TT
20

Kia, Hyundai Settle Class-action Lawsuit after a Rash of Thefts Due to Security Flaw

FILE - A line of 2022 Santa Fe SUV's sit outside a Hyundai dealership Sunday, Sept. 12, 2021, in Littleton, Colo. (AP Photo/David Zalubowski, File)
FILE - A line of 2022 Santa Fe SUV's sit outside a Hyundai dealership Sunday, Sept. 12, 2021, in Littleton, Colo. (AP Photo/David Zalubowski, File)

Hyundai Motor America and Kia America said Friday they have reached a settlement to resolve a class-action lawsuit prompted by a surge in vehicle thefts.

The settlement could be valued at $200 million and covers about 9 million 2011-2022 model year Hyundai and Kia vehicles in the US, the companies said.

The cars are not equipped with push-button ignitions and immobilizing anti-theft devices. That has allowed thieves to easily steal them using just a screwdriver and a USB cord, creating a recent rash of auto thefts across the country, The Associated Press said.

The settlement will provide cash compensation to customers who suffered theft-related losses or damage not covered by insurance — as well as reimbursement for insurance deductibles, increased insurance premiums and other losses, Kia and Hyundai said.

A software upgrade will also be provided to eligible owners. For customers with vehicles that cannot accommodate the software upgrade, the agreement will provide a reimbursement of up to $300 for anti-theft devices.

Kia and Hyundai have also given impacted customers tens of thousands of free steering wheel locks through local law enforcement and direct shipments, the companies said.

The total settlement amount will depend on how many customers participate.

“Hyundai and Kia failed to sell cars equipped with fundamental anti-theft features, and that was not a victimless act," attorney Elizabeth A. Fegan of Fegan Scott, one of the law firms representing the plaintiffs, said in a statement. "We are pleased with the settlement reached and its immediate ability to hinder thieves, as well as compensate victims of thefts that have already occurred.”

The proposed settlement is expected to be reviewed in court for preliminary approval in July.

The wave of Hyundai and Kia thefts began in 2021 and spread nationally, with a spike last summer, fueled by instructional videos posted on TikTok and other social media sites. Some police departments report continued thefts despite the automakers’ unveiling of anti-theft software nearly three months ago.

Both Jason Erb, Hyundai Motor North America's chief legal officer, and John Yoon, Kia America's chief legal officer, stressed that the companies are committed to customer safety.

“We appreciate the opportunity to provide additional support for our owners who have been impacted by increasing and persistent criminal activity targeting our vehicles,” Erb said.



Iceland Engulfed by Volcanic Cloud

Smoke and lava rise from a volcano eruption near Reykjanes, Iceland, 19 July 2025. EPA/JAKOB VEGERFORS
Smoke and lava rise from a volcano eruption near Reykjanes, Iceland, 19 July 2025. EPA/JAKOB VEGERFORS
TT
20

Iceland Engulfed by Volcanic Cloud

Smoke and lava rise from a volcano eruption near Reykjanes, Iceland, 19 July 2025. EPA/JAKOB VEGERFORS
Smoke and lava rise from a volcano eruption near Reykjanes, Iceland, 19 July 2025. EPA/JAKOB VEGERFORS

Iceland experts on Monday blamed a lack of wind for a volcanic cloud that has lingered over much of the island since an eruption last week.

Two craters of a volcano on the Reykjanes peninsula spewed out the sulphur-packed cloud on Wednesday, AFP reported.

The thick haze has left the capital Reykjavik and the southwest of the country in a pollution red alert, the highest level in Iceland's monitoring system.

Hylnur Arnason of the Icelandic Energy and Environment Agency said that volcanic eruptions normally cause air pollution, mainly from the sulphur dioxide that is emitted. The gas becomes sulfate in the atmosphere, creating a volcanic fog.

"It's completely misty in large parts of the country," said Arnason.

"Usually in Iceland we have lots of wind, which would carry the pollution away, but right now we don't," the expert added. "Now it's kind of just sitting over the whole country."

Arnason said the gas was not toxic but could be an "irritant".

The environment agency has recommended that vulnerable people should remain at home and take precautions against the pollution. The wind was expected to start strengthening again late Monday.