Hyundai, Kia To Pay $200 Million To Settle Class Action Lawsuit Over TikTok Inspired Thefts

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Hyundai and Kia announced have entered into an agreement to resolve a class action lawsuit brought against them by American owners of vehicles with a major security lapse. The agreement could be worth up to $200 million, depending on how many customers choose to participate, lawyers for the owners said on Thursday.

“This agreement is the latest step in a series of important actions, in addition to providing a free security software upgrade and distributing over 65,000 steering wheel locks, that Kia has taken to help customers whose vehicles have been targeted by criminals using methods of theft popularized on social media,” said John Yoon, Kia America’s chief legal officer. “Kia remains committed to assisting our customers and upholding vehicle security.”

More: First Reported Case Of Kia Stolen After Receiving Security Update

As part of the settlement, the two automakers agreed to provide compensation to owners in the U.S. who have incurred theft-related vehicle losses or damage not covered by insurance. It will also compensate those who have to pay increased insurance premiums, or other insurance related costs.

The payment tier encompasses various forms of compensation for out-of-pocket losses. This includes reimbursement for total vehicle loss up to $6,125, vehicle and personal property damage up to $3,375, expenses related to insurance, as well as additional costs such as car rental, taxi fares, ride-sharing expenses, or public transit payments that are not covered by insurance.

The lawyers representing the owners said that class members may also seek to recover losses related to lost income or childcare expenses resulting from the implementation of the software upgrade.

Read: Hyundai, Kia Offer Old-Tech Solution To Hi-Tech TikTok Car Theft Epidemic

In addition, the brands will install a free software update in eligible vehicles in conjunction with their next service or maintenance appointment. Those whose vehicles cannot be updated will get up to $300 in reimbursement for the purchase of a variety of anti-theft devices.

The settlement relates to around 9 million Hyundai and Kia vehicles that did not have a push-button ignition or an immobilizing anti-theft device. Viral videos on TikTok and other platforms known as the “Kia Challenge” demonstrated how these vehicles could be stolen within 90 seconds using a simple USB charging cord or a similar metal object to start the engine. Following the widespread circulation of these videos, an epidemic of thefts followed.

In some places, such as Atlanta, Georgia, Kia and Hyundai vehicles were the targets of more thefts than all other vehicles combined in recent months. In response, a number of cities called for recalls of the brands’ vehicles, while others sued, claiming that the rising theft rates were putting strain on city budgets – a conflict this agreement does not address.

A court is expected to review the proposed settlement for preliminary approval in July. Notices will be sent to class members after final approval is received.

Vehicles Included In Class Action Settlement