Hyundai and Kia have agreed to settle a consumer class-action lawsuit worth $200m over rampant thefts of the vehicles because of a TikTok trend.
In February, the Korean automakers said they would offer software upgrades to 8.3m US vehicles to help curb a stark increase in thefts using a method popularized on TikTok and other social media channels.
The TikTok trend started spreading in 2021, challenging users to steal 2010 to 2021 model year Kia and Hyundai cars using a USB cable. Cities across the US saw thefts of the vehicles rise sharply. By fall 2022, Los Angeles officials said there was an 85% increase in thefts of Kia and Hyundai vehicles compared with the previous year.
The videos, often accompanied by hashtags like #KiaBoys, typically included people breaking into the car and hot-wiring it using the USB cable and then driving it around.
The settlement agreed on this week covers about 9 million US owners and includes up to $145m for out-of-pocket losses for consumers who had cars stolen, lawyers for the owners said.
It covers owners of 2011 through 2022 model year Hyundai or Kia vehicles with a traditional “insert-and-turn” steel key ignition system. It includes payments for total loss of vehicles up to $6,125, damage to vehicle and personal property up to $3,375 and insurance-related expenses.
Other related expenses including car rental, taxi or other transportation costs not covered by insurance are also included in the settlement.
Owners can get reimbursed for towing costs and for stolen vehicles that suffered crashes or were never recovered, as well as payments for tickets or other penalties or fines incurred arising from a stolen vehicle.
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Many major cities have sued the automakers over the thefts including St Louis, Missouri; Cleveland, Ohio; San Diego, California; Milwaukee, Wisconsin; Columbus, Ohio; Baltimore and Seattle.
