Kia and Hyundai Settlement: Class Action, AG Deal, and Free Fixes

If you own or lease a Kia or Hyundai that was easy to steal because it lacks an engine immobilizer, there are two separate Kia and Hyundai settlements you should know about. The larger one is a consumer class action valued at over $200 million; its claim window closed on April 28, 2025, and payments have not yet gone out. The second is a $9 million multistate agreement led by 36 state attorneys general, announced on December 16, 2025, and it is still accepting claims through March 31, 2027. Each settlement covers a different group of people and pays for different things.¹²

Why There Are Two Settlements

Both settlements stem from the same underlying problem. Hyundai and Kia sold millions of 2011–2022 vehicles with traditional turn-key ignitions and no engine immobilizer, a standard anti-theft component in 96% of other manufacturers’ vehicles by 2015 but only 26% of Hyundai and Kia models that year.³ After the “Kia Challenge” spread on TikTok and YouTube in 2021, thefts of these cars exploded. Insurance data showed theft claims for Hyundai and Kia vehicles in the first half of 2023 running more than ten times higher than in the first half of 2020.⁴

The class action came from affected owners suing collectively. The multistate deal came from state attorneys general enforcing consumer protection laws, and it specifically covers people who were still being stolen from after the class action’s claim deadline, because the software update that Hyundai and Kia rolled out in February 2023 turned out to be easy for thieves to bypass.⁵

The $200 Million Consumer Class Action

The class action, In re: Kia Hyundai Vehicle Theft Marketing, Sales Practices, and Products Liability Litigation, was consolidated in the U.S. District Court for the Central District of California before Judge James V. Selna. It carries a total value of over $200 million, including a cash common fund of up to $145 million plus the value of free software upgrades, and covers roughly 9 million vehicles nationwide.¹⁶

Which Vehicles Are Covered

The class includes anyone who bought or leased certain 2011–2022 Kia or Hyundai vehicles (some Hyundai models go back to 2008) equipped with a turn-key ignition and no engine immobilizer, in the United States or its territories.¹

Hyundai models in the class include the Accent, Elantra (and the Coupe, GT, and Touring variants), Genesis Coupe, Kona, Palisade, Santa Fe (including Sport and XL), Sonata, Tucson, Veloster, Venue, and Veracruz, across various years from 2011 to 2022.⁷ Kia models include the Forte (2011–2021), K5 (2021–2022), Optima (2011–2020), Rio (2011–2021), Sedona (2011–2021), Seltos (2021–2022), Sorento (2011–2022), Soul (2011–2022), and Sportage (2011–2022).⁸

What the Class Action Pays

Payouts depend on what happened to your vehicle. The categories of relief include:

A free software upgrade for eligible vehicles.
Reimbursement of up to 60% of the vehicle’s Black Book value for a total loss from theft.⁹
The greater of $3,375 or 33% of Black Book value per incident for vehicle damage or stolen property.⁹
Up to $375 per incident for insurance deductibles and premium increases.¹⁰
Up to $250 per incident for other out-of-pocket costs such as towing, transportation, and related fines.¹⁰
Up to $350 per fob (limit of two) if a dealership required fob replacement for the software upgrade.⁷
Up to $300 for anti-theft devices such as steering wheel locks or glass breakage alarms if your vehicle was not eligible for the software upgrade.⁹

Deadline and Payment Status

The deadline to submit new claims was April 28, 2025, and that deadline has passed. If you already filed a claim and received a final determination notice, you have 45 days from that notice to appeal the determination through the settlement website.¹¹

Payments have not yet been distributed. Two class members objected to the deal and appealed after final approval; the Ninth Circuit rejected both appeals on January 8, 2026, and the case was scheduled to return to the district court on January 26, 2026, unless the objectors took the matter to the Supreme Court.¹ As of mid-2026, the settlement administrator, Angeion Group, is working through the remaining steps before issuing payments.¹²

The $9 Million Multistate Attorney General Settlement

Announced on December 16, 2025, this agreement was led by the attorneys general of Connecticut, Minnesota, and New Hampshire, with 36 states participating in total.⁵ It splits $9 million evenly between consumer restitution ($4.5 million) and reimbursement to the states for investigation costs ($4.5 million).¹³

The agreement also forces the automakers to install free zinc-reinforced ignition cylinder protectors (zinc sleeves) in eligible vehicles, including those that had already received the earlier software update; to equip all future vehicles sold in the United States with industry-standard engine immobilizers; and to publicize the anti-theft measures for the next five years.¹⁴

Who Is Eligible for Restitution

The restitution fund covers a narrower group than the class action. To qualify, you must:

Own or lease an eligible vehicle,
Have already had the software upgrade installed, or have had an appointment scheduled, and
Have experienced a theft or attempted theft on or after April 29, 2025, before you had the chance to get the zinc sleeve installed.¹⁵

Payments can reach up to $4,500 for a total loss and up to $2,250 for partial losses.¹⁶ The $4.5 million fund is capped and will not be refilled once it runs out, so filing early matters.¹⁷

How to File

Claims can be submitted at hkmultistateimmobilizersettlement.com or by mail. You will need your 17-character Vehicle Identification Number. The claim deadline is March 31, 2027.¹⁵ For questions, the settlement information line is (800) 333-4542.¹⁸

Free Fixes Still Available for Current Owners

Even if you cannot file a claim, two free remedies remain available to eligible owners. The first is the software upgrade Hyundai and Kia launched in February 2023, which extended the alarm duration from 30 seconds to one minute and added a requirement that the key be in the ignition for the engine to start.¹⁹ About 20% of affected vehicles were not eligible for the software fix and were offered steering wheel locks instead.²⁰

The second is the zinc-reinforced ignition cylinder protector required by the multistate settlement. Eligible owners have one year from the date they receive notice from the automakers to schedule a free installation at an authorized dealership.¹⁴

A Different Kia and Hyundai Settlement: HECU Fires

If you came here looking for the Kia and Hyundai settlement involving brake-related engine fires, that is a separate case. In Zakikhani v. Hyundai Motor Company, plaintiffs alleged that defective Hydraulic Electronic Control Units in roughly three million vehicles could short-circuit and cause engine compartment fires.²¹ Judge Stanley Blumenfeld Jr. granted final approval on May 5, 2023, and the deal became effective on February 13, 2024. The settlement was valued at over $300 million and provided repairs, extended warranties, reimbursement for past repairs, and total-loss compensation (maximum Black Book value plus a $140 goodwill payment) for vehicles destroyed by fires from the defect.²² HECU claim deadlines passed in 2023, and this case is unrelated to the theft litigation.

City Lawsuits Are Still Pending

More than a dozen cities, including Columbus, Seattle, Milwaukee, Cleveland, Cincinnati, Madison, Buffalo, and Rochester, have filed public nuisance suits alleging that the missing anti-theft technology forced them to spend heavily responding to thefts and related crime.²³ San Diego filed its own suit in March 2023, pointing to 369 Hyundai and Kia thefts in the city during the second half of 2022 alone.²⁴ Both the district court and the Ninth Circuit rejected the automakers’ argument that federal safety standards preempt the cities’ claims. The municipal cases are consolidated under Judge Selna as MDL No. 3052 and remain ongoing. Individuals cannot file claims against these city lawsuits; they are brought by local governments to recover their own costs.

1
Hagens Berman. Hyundai-Kia USB Car Theft Defect FAQ
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New York Attorney General. Attorney General James Secures $9 Million From Hyundai and Kia
3
Washington State Attorney General. States Settle With Hyundai, Kia Over Failure to Equip Vehicles With Anti-Theft Technology
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Connecticut Attorney General. Attorney General Tong Leads Multistate Settlement With Hyundai and Kia
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