James Selna, U.S. District Judge in Santa Ana, California, said the lawsuit would continue. In its decision to reject, it did not find acceptance of the arguments of the two Korean companies, which consider that the claim of “collecting money” from the two insurance companies is unfair, as they collected insurance premiums from vehicle owners, assuming the risks of theft. The judge did not accept the argument that the insurance companies did not even mention the names of the owners of the affected vehicles.
According to Silna, the insurance companies’ arguments that the thefts were expected due to the lack of anti-theft devices in the case of 14.3 million Hyundai and Kia cars produced between 2011 and 2022 are acceptable. The judge in California stated that the insurance companies received the premiums, but the automakers did not install any anti-theft devices in the vehicles as required by federal regulations and violated the Consumer Protection Act, so they bear full responsibility.
Hyundai said it was disappointed by the decision, and closely related Kia remains confident that the plaintiffs’ claims are baseless and that its vehicles meet federal safety and anti-theft regulations. The two companies pledged to cooperate with law enforcement authorities in cases related to theft.
The thefts began to spread in the United States in 2021 after a video was posted on TikTok showing how to jump-start vehicles without immobilizers and push-button start in seconds by plugging in a USB cable.
Due to public safety concerns, several major US cities, including New York, Baltimore, Cleveland, Milwaukee, San Diego and Seattle, have also filed lawsuits against the two South Korean companies over the widespread thefts.
New York City authorities, for example, have complained that the number of reported Hyundai and Kia thefts doubled last year, and the first four months of this year have already seen a massive increase, with thefts increasing nearly six and a half times compared to the same period last year. , while for example for BMW, Ford, Honda, Mercedes, Nissan and Toyota, the number of thefts decreased.
In late October, Judge Selna gave preliminary approval to the $200 million out-of-court settlement between Hyundai and Kia in a consumer theft class action lawsuit.
Regarding the accusations, Hyundai drew attention to the fact that in November 2021, it had already provided an immobilizer system as standard equipment in all its cars and had taken other measures, including updating the software, to reduce the risk of theft.
