In a major legal development, Hyundai Motor Co. and Kia Corp. have agreed to pay up to $145 million to settle a class action lawsuit involving millions of affected Kia vehicles. This settlement comes after a surge in theft cases linked to Kia models lacking engine immobilizer, a vulnerability widely exposed on social media platforms like TikTok. The lawsuits alleged that Hyundai, which owns Kia, failed to equip these vehicles with basic anti-theft technology, leading to thousands of thefts and related damages across the United States and its territories.
While Hyundai and Kia deny any wrongdoing, they have agreed to the settlement to resolve the claims efficiently and offer relief to affected vehicle owners. This action reflects a growing global emphasis on consumer safety and corporate accountability, especially in the automotive sector, where design oversights can have far-reaching consequences.
Though the claim form submission window is now closed, thousands of class members are waiting for the payment release.
Kia $145 Million Vehicle Theft Class Action Settlement 2025
The settlement applies to both individuals and entities that leased or purchased specific Kia models between designated years. These vehicles were identified as particularly vulnerable due to the missing immobilizer technology.
Here’s a clear breakdown:
| Eligible Kia Models (Across U.S. & Territories) | Model Years |
|---|---|
| Kia Forte | 2011–2021 |
| Kia K5 | 2021–2022 |
| Kia Optima | 2011–2020 |
| Kia Rio | 2012–2021 |
| Kia Sedona | 2011–2021 |
| Kia Seltos | 2021–2022 |
| Kia Sorento | 2011–2022 |
| Kia Soul | 2020–2022 |
| Kia Sportage | 2011–2022 |
It’s important to emphasize that this settlement does not cover claims for personal injury, death, or insurance company subrogation, focusing instead on theft-related losses and security upgrades.
Anti-Theft Software and Physical Security Upgrades
One of the main features of this settlement is the offering of free software upgrades to address the immobilizer issue. This upgrade blocks unauthorized engine starts, effectively preventing thefts using methods popularized online.
Vehicles in the U.S. and Washington, D.C. eligible for the software upgrade include:
- Kia Forte (2014–2021)
- Kia K5 (2021–2022)
- Kia Optima (2011–2020)
- Kia Rio (2012–2021)
- Kia Sedona (2011–2021)
- Kia Seltos (2021–2022)
- Kia Sorento (2011–2022)
- Kia Soul (2020–2022)
- Kia Sportage (2011–2022)
Unfortunately, vehicles in Puerto Rico, the U.S. Virgin Islands, and Guam are not eligible for the software upgrade. Instead, owners in these territories can claim reimbursements for the purchase and installation of physical anti-theft devices.
| Reimbursement Type | Maximum Amount |
|---|---|
| Steering wheel lock or similar (if software not available) | Up to $300/vehicle |
| Glass-breakage alarm or aftermarket system (if steering lock already provided) | Up to $250/vehicle |
Out-of-Pocket Compensation for Theft Losses
Beyond preventive measures, the settlement allows class members to recover a range of financial losses tied to vehicle theft or theft attempts.
Here’s a quick list of what class members can claim:
✅ Reimbursement up to 60% of the Black Book value for total loss after qualifying theft.
✅ Up to $3,375 or 33% (whichever is higher) for vehicle damage or stolen/damaged personal property.
✅ Up to $375 for insurance deductibles and premium increases due to theft.
✅ Up to $250 for related expenses (e.g., towing, transport, tickets) tied to the theft event.
✅ Up to $250 combined for lost income or childcare linked to obtaining the software upgrade.
✅ Reimbursement up to $350 per OEM key fob (max two) if required for the software upgrade.
These reimbursements ensure claimants can recover significant portions of theft-related costs.
Important Deadlines and Court Hearings
Several important dates govern the settlement process, and staying informed is essential for claimants:
| Milestone | Deadline |
|---|---|
| Deadline to Opt Out or Object | May 3, 2024 |
| Final Fairness Hearing | July 15, 2024 |
| Claim Submission Deadline | April 28, 2025 |
Currently, claimants are waiting for the court’s final approval following the July fairness hearing before any payments are disbursed.
Key Points Claimants Should Remember
For clarity, here’s a second helpful list of what every class member should keep in mind:
- Use your VIN to check software upgrade eligibility on Kia’s official website.
- Submit any required follow-up documents promptly if Kia or the settlement administrator requests verification.
- Monitor official updates post-hearing in July 2024 to track payment release timelines.
- Keep receipts and documentation ready for any reimbursed items or services, such as steering wheel locks or alarms.
- Understand that the total settlement fund ranges from $80 million to $145 million, depending on final claim counts and types.
Broader Implications and Final Notes
The Kia vehicle theft settlement stands as a critical reminder that car manufacturers must balance innovation and cost-cutting with rigorous safety standards. While Hyundai and Kia have denied legal wrongdoing, they are addressing consumer concerns through this substantial settlement, offering both preventive measures and financial relief.
For affected vehicle owners, staying updated on the legal process and settlement distribution is vital to ensure timely receipt of benefits. As the automotive industry moves forward, this case will likely serve as a precedent for how design vulnerabilities, when exposed, can reshape corporate practices and consumer protections.