Hyundai Class Action Lawsuit: Theft, Engine, and AG Settlements

Hyundai owners are covered by two main groups of class action settlements: one over 2011–2022 models built without engine immobilizers that became easy targets for theft, and one over Theta II, Nu, and Gamma engines that can seize or catch fire. A Hyundai class action lawsuit tied to the theft defect reached final approval in October 2024 and was affirmed on appeal in January 2026, while a separate multistate settlement announced in December 2025 is still accepting theft-related claims through March 31, 2027. The engine settlements are closed to new claims but continue to provide extended warranty coverage.

The Theft Settlement (Federal Class Action)

The federal case, In re: Kia Hyundai Vehicle Theft Marketing, Sales Practices, and Products Liability Litigation, was consolidated before Judge James V. Selna in the Central District of California. It alleged that millions of 2011–2022 Hyundai and Kia vehicles were sold without engine immobilizers, letting thieves start the cars with a screwdriver or a USB cable.¹²

The settlement is valued at more than $200 million, with a common fund between $80 million and $145 million for approved claims.³⁴ What a claimant can recover depends on documented loss, subject to these caps:

Total loss of the vehicle: up to 60% of Black Book value.
Vehicle damage or stolen personal property: up to the greater of $3,375 or 33% of Black Book value per qualifying theft or attempt.
Insurance deductibles and premium increases: up to $375.
Towing, transportation, and fines: up to $250.
Lost income and childcare: up to $250 total.
Replacement key fobs needed for the software upgrade: up to $350 per fob, two-fob limit.
Aftermarket anti-theft devices for vehicles that cannot receive the software fix: up to $300.⁴

Eligible vehicles also get a free anti-theft software upgrade at authorized dealers. Older vehicles that cannot run the software qualify for the aftermarket device reimbursement instead.⁴

Which Hyundai Models Are Covered

The covered Hyundai models are the Accent, Elantra, Elantra Coupe, Elantra GT, Elantra Touring, Genesis Coupe, Kona, Palisade, Santa Fe, Santa Fe Sport, Santa Fe XL, Sonata, Tucson, Veloster, Venue, and Veracruz, across various model year ranges within the 2011–2022 window.⁴ Not every model year of every nameplate is included, so the VIN check on the settlement site is the reliable way to confirm.

Current Status

Two class members appealed the settlement after their objections were overruled. The Ninth Circuit affirmed Judge Selna’s approval in full on January 8, 2026, rejecting arguments that the amount was inadequate and finding that tying payouts to documented harm was equitable.⁵⁶ The case was scheduled to transfer back to the district court on January 26, 2026, so the settlement administrator (Angeion Group) could start issuing payments, provided no petition to the Supreme Court was filed.

The claim deadline for the Hyundai side was April 28, 2025, and has passed.⁴ Owners who filed on time should expect payment through Angeion once the transfer back to the district court is complete. Owners who missed the deadline should look at the multistate settlement below, which may still be open to them.

The Multistate Attorney General Settlement (Still Open)

On December 16, 2025, 36 state attorneys general reached a separate settlement with Hyundai and Kia. The investigation, launched by Minnesota in March 2023, concluded that the 2023 software update by itself was insufficient because thieves could bypass it.⁷

Two things came out of it. First, Hyundai and Kia must provide free zinc-reinforced ignition cylinder protectors, a physical hardware fix, at authorized dealers, and must install industry-standard immobilizers in all future U.S. vehicles. The companies estimated the cylinder-protector program at more than $500 million.⁸⁷ Second, up to $4.5 million in restitution is set aside for consumers who suffered a theft or attempted theft on or after April 29, 2025, after already receiving the software update or scheduling one.⁹

Claims run through HKMultistateImmobilizerSettlement.com. The filing window closes March 31, 2027, but the restitution fund is capped and payments are being disbursed on a rolling basis until it runs out.¹⁰ Filing sooner rather than later matters.

The 36 participating states are Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, and Wisconsin.¹¹

Engine Failure and Fire Settlements

Hyundai’s Theta II, Nu, and Gamma engines have been the subject of two consolidated class actions, commonly called Engine I and Engine II. Both have final approval, both are closed to new claims, and both provide ongoing warranty relief that owners can still use if an engine fails.

Engine I: Theta II GDI

In re: Hyundai and Kia Engine Litigation (Case No. 8:17-cv-00838) covers 2011–2019 Hyundai Sonata, 2013–2019 Hyundai Santa Fe Sport, and 2014–2015 and 2018–2019 Hyundai Tucson vehicles equipped with 2.0-liter or 2.4-liter Theta II GDI engines, along with the corresponding Kia Optima, Sorento, and Sportage.¹²¹³ Final approval came on June 10, 2021, and the claims deadline passed August 9, 2021.

The core benefit is a lifetime warranty extension on the engine short block assembly for owners who have completed the Knock Sensor Detection System (KSDS) software update. The settlement also covers reimbursement for past qualifying repairs, towing, and rental cars, and compensation for vehicles sold or traded in after a failure. Denied warranty claims can go to binding arbitration through BBB National Programs.¹⁴

Engine II: Theta II MPI, Nu GDI, and Gamma GDI

In re: Hyundai and Kia Engine Litigation II (Case No. 8:18-cv-02223) extends coverage to additional engine families. On the Hyundai side, the settlement reaches the 2011–2015 Sonata Hybrid, 2016–2019 Sonata Hybrid and Plug-In Hybrid, 2010–2012 Santa Fe, 2010–2021 Tucson across various engines and model year ranges, 2014 Elantra Coupe, 2014–2016 Elantra, 2014–2020 Elantra GT, and 2012–2017 Veloster.¹⁵

Judge Josephine L. Staton granted final approval on April 26, 2024, and the claims deadline passed July 8, 2024. The main relief is an extended warranty of 15 years or 150,000 miles covering connecting rod bearing failures on the engine short block. Owners generally must have completed the KSDS software update, though vehicles subject to Hyundai Recall Nos. 198 and 209 are exempt from that requirement.¹⁵ The settlement also provides reimbursement for past repairs, towing, and incidental expenses, plus goodwill payments for repair delays and total-loss compensation for vehicles destroyed by qualifying fires.¹⁶ Denied claims can be appealed through BBB National Programs arbitration; those decisions are final and binding.¹⁷

How to File or Pursue a Claim Now

Start by identifying which settlement applies. Look up your VIN on the relevant settlement site before doing anything else, because eligibility turns on the specific model year and engine, not the nameplate.

If your theft or attempted theft happened on or after April 29, 2025, and you had the anti-theft software update installed (or an appointment scheduled) at the time, file through HKMultistateImmobilizerSettlement.com before March 31, 2027, and understand that the restitution fund pays out on a rolling basis until exhausted.¹⁰

If you filed by April 28, 2025, in the federal theft class action, your claim is in the queue; Angeion Group is the administrator, and payments were set to begin once the case returned to the district court in early 2026.⁴

If your Hyundai has one of the engines covered by Engine I or Engine II, the claims deadlines are gone, but the extended warranty and short-block coverage still apply going forward. Complete the KSDS software update if you haven’t, keep all repair and towing receipts, and if a dealer denies a warranty repair the settlement entitles you to, file for arbitration through BBB National Programs.¹⁴¹⁷

Two boundaries worth knowing. The Hyundai and Kia fuel economy class action covering 2011–2013 model years is fully resolved; that $255 million settlement was affirmed by the Ninth Circuit en banc on June 6, 2019, and payments were mailed to class members by early 2020.¹⁸ And the recent settlement over defective ABS control modules alleged to cause engine-compartment fires applies only in Canada; it was approved by the Supreme Court of British Columbia on November 28, 2025, with a claims deadline of May 19, 2026.¹⁹ U.S. owners are not covered by that case.

1
CourtListener. In Re Kia Hyundai Vehicle Theft Litigation
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AG New York. Attorney General James Secures $9 Million From Hyundai and Kia for Failing to Protect Cars
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Oakland City Attorney. Judge Grants Final Approval of Kia and Hyundai Consumer Settlement
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Hagens Berman. Hyundai Kia USB Car Theft Defect
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AG New York. Attorney General James Secures $9 Million From Hyundai and Kia
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HK Multistate Immobilizer Settlement. HK Multistate Immobilizer Settlement
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