On June 10, 2021, the Court authorized the Settlement and entered judgment. When all appeals have been exhausted, this is known as the “Effective Date,” and payments for approved claims will be sent out 30 days after that. The ruling can be appealed until July 12, 2021. Payments will start for claims that have been processed on August 10, 2021 if no appeals are submitted.
For more information on the specific claims, please refer to the Settlement Notice and Settlement Agreement.
Please visit the Updates and Key Dates page for the most recent information on this settlement.
In This Article...
If your car has a harmful flaw, it can burn out or catch fire. You might be eligible for compensation. Learn about your rights.
Case Update as of 05/10/21:
The $1.3 billion Theta II GDI settlement received final approval from Judge Josephine L. Staton on May 10, 2021. The remedies provided under the settlement are described in the court’s approval of the settlement, which also includes a lifetime warranty against the engine defect, software installation intended to identify and prevent the engine defect, reimbursements for repair-related expenses and lost value because of engine failures or fires, and payment for repair delays.
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I have received a thorough email regarding this class action settlement, which will help owners of Hyundai vehicles with Theta engines (2.0 and 2.4 L direct injection): certain Sonata, Tucson, and Santa Fe Sport models from various years, generally between 2011 and 2019.
The key components are: 1) a lifetime warranty on the engine block following the installation of the “Knock Sensor Detection System” (I surmise that it may simply be software; it is known as the “953 campaign” upgrade); and
2) Payment of expenses incurred by those whose engines malfunctioned.
In the model-specific sub-forums throughout the past few years, there have been extensive debates concerning the issues with these engines. Among them is a thread on the Sonata LF sub-forum that refers to a Google translated article about a whistleblower who alleged that Hyundai was aware of the issues with this engine but was attempting to hide them.
Personally, I am pleased that the attorneys were successful in bringing about this class action lawsuit and reaching a settlement. However, there is still a mystery: Despite the payment, Hyundai (HMC and HMA) has not acknowledged any engine issues and has not identified the root cause (s).
When must I submit my claim?
The “class members” – individuals who are covered by the agreement – have 90 days from the date of final approval, which was granted on May 10, to submit claims, according to the settlement website. However, drivers have until April 12, 2021, to make “most claims for reimbursements.”
Important: Hyundai and Kia drivers DO NOT need to submit a claim to benefit from the settlement’s lifetime warranty coverage, but they DO need to have installed the knock sensor detecting system software update (more on this in the section below) (more on this in the section below).
Hyundai and Kia drivers must complete a claim form in order to obtain any additional settlement rewards.
Nearly 300,000 Kia vehicles are being recalled in the United States due to an engine fire risk.
Despite Hyundai’s insistence that there is no issue with the engines, the class-action attorneys claim that Hyundai consented to the deal to “avoid the cost and risk of future litigation, including a potential trial.” Suing the automaker after accepting a settlement sum is prohibited.
The settlement includes a lifetime extension of the powertrain warranty, payment for previous repairs and their associated costs, compensation in the event that the vehicle was exchanged or sold at a loss, payment in the event of a total loss due to fire, and a trade-in rebate program. Despite the fact that both parties have consented to the settlement, it must still be confirmed by the courts before payment is paid; this is anticipated to take place in February 2021.
Does Hyundai have a settlement?
Last week, the CFPB revealed that it had reached an agreement with Hyundai Capital America (Hyundai) to resolve claims that it had violated Regulation V and the Fair Credit Reporting Act when it provided information to consumer reporting agencies about retail installment contracts and leases for cars.
Which Hyundai vehicles are powered by Theta II engines?
- Tucson/ix35 from Hyundai (LM) (2009-2015)
- Honda Accord (2007-2014)
- Forte (TD) Kia (2008-2012)
- K5/Kia Optima (2008-2012)
- Sportage (SL) by Kia (2010-2013)
Will Hyundai provide free engine repair?
Many Hyundai and Kia models’ new car warranties have been generously extended to 10 years/200,000 miles, making owners eligible for a free replacement engine in the event that the connecting rod or crank shaft bearings fail.
How is Hyundai handling the recall of engines?
A fuse can be changed by a dealer. The control modules will also be examined by Hyundai dealers, who will replace them if necessary. Letters of notification will be mailed out by Hyundai commencing on April 5 and by Kia on March 31.
How much of the Hyundai settlement are people receiving?
The following advantages are offered to Class Members under the settlement of the engine fault class action:
- extending the warranty
- Payment for previous repairs
- reimbursement for costs incurred by previous repairs
- Payment for a vehicle that has been sold or traded in
- Compensation for vehicle loss due to a fine
- rebate scheme for used goods
- a leaflet with information
Under the terms of the class action settlement, the warranty extension is available to all Class Members, even those who have not had issues with the alleged engine flaw. The Powertrain Warranty will be changed to a Lifetime Warranty as one of the advantages. Class Members who drive covered cars with fully updated knock sensor detection software are eligible for the warranty extension.
The short-block assembly will be covered by the extended warranty for a variety of damages, as well as any harm brought on by the failure of the connecting rod bearing in the remainder of the long block assembly. The warranty extension also offers a rental reimbursement of up to $40 per day.
Class Members who paid for repairs to qualifying vehicles may be eligible for reimbursement, a free tire rotation and oil change at a Hyundai dealer, as well as an inconvenience reward if the repair took longer than 60 days. A dealer credit of $65 for delays between 61 and 90 days and $100 for those between 91 and 120 days, plus an additional $35 credit for each additional 30 days of delay, is provided as compensation for inconvenience.
Additionally, Class Members are eligible to recover costs for towing and other necessary services as well as repairs for the purported engine issue.
Class Members who traded in or sold their covered car for less than they paid for it may be eligible to receive an additional $140 payment in addition to their loss. The oil light turning on, the engine stalling, or any other issue associated with the alleged fault must have occurred, but the Class Member must not have received the remedy prior to the incident. The Class Member may be entitled to receive $140 in addition to the difference between the vehicle’s fair market value and the amount they received for it under the terms of the settlement.
Class Members are eligible to receive the value of the car and an extra $140 payment, less any money they could have received as compensation for the loss, if the covered vehicle experienced an engine fire and was determined to be a total loss.
Also available to Class Members is a Trade-In Rebate Program. The trade-in value of the car and the model year of the vehicle are used to determine rebates under the scheme. The maximum refund amounts for automobiles from 2011 through 2014 are $1,750; for those from 2015 through 2016 they are $1,000; and for those from 2017 through 2019 they are $500.
Last but not least, Hyundai has agreed to distribute leaflets to Class Members including information on any extra advice about the upkeep of vehicles covered by the engine fault class action settlement.
Is Hyundai the subject of a class action lawsuit?
A new class action lawsuit in Illinois filed against Kia and Hyundai makes this assertion.
Yvette Davis was proud of herself when she was finally able to purchase and claim ownership of this 2011 Hyundai Sonata after years of financial hardship.
On August 28, Davis’ pride was dashed when she went outside and saw that her automobile had been taken from in front of her house.
Davis started his investigation after filing a police report. She discovered that numerous class action lawsuits have been brought against Hyundai and Kia around the nation, arguing that the lack of an immobilizer is the reason the vehicles are so simple to steal.
Then CBS 2 discovered that one had recently been filed in federal court in Chicago for Illinois as well.
The lead attorney for the Illinois complaint and a dozen others, Ken McClain, alleges that Hyundai and Kia did not install the immobilizers to keep the cost of the vehicles low.
Kia and Hyundai have been aware for some time that not installing an immobilizer disadvantages their vehicles, according to McClain.
She is, nevertheless, among the fortunate. She recently received a letter informing her that her Sonata was being held in a city impound lot. Driveable despite damage.
But she doesn’t have any money to fix it because her sole insurance is liability. She was placed in touch with the class action lawsuit’s attorneys by CBS 2.
People who have had their Kias or Hyundais stolen are included in the lawsuits, according to McClain.
“We will be looking to have them reimbursed,” McClain said. “We will have different kinds of people with damages, including those who have had their cars taken.”
There are 13 claims against Kia and Hyundai, with McClain serving as the lead counsel in at least three of them. Both Hyundai and Kia were contacted by CBS 2 and asked for an interview or a response. Both stated that they do not speak on ongoing legal disputes.
Theta class action lawsuit: what is it?
Case Analysis
Two class actions against Hyundai Motor America, Inc. (HMA) and Hyundai Motor Company (HMC) have been settled. The claims were that some Hyundai automobiles with genuine Theta II gasoline direct injection 2.0 and 2.4 liter engines contain a flaw. The complaints claimed that the fault might lead to engine fires, stalling engine failure, and engine seizures; they also claimed that some owners or lessees had their warranty repairs rejected. No claims for wrongful death, personal injury, property damage, or subrogation are included in the class action.
Docket No. :
Evidence of Purchase:
Eligibility:
If you purchased or leased a Class Vehicle in the US, or if you did so while serving in the US military abroad, you might be eligible. (You are not eligible if you purchased or leased your vehicle in US territory or abroad while not on active US military assignment.)
If they have 2.0 or 2.4 liter authentic Theta II gasoline direct injection engines that meet OEM standards, the following are considered class vehicles.
Only vehicles produced prior to the adoption of the Kock Sensor Detection System technology will be included in the Class for 2019 model year vehicles.
Will Hyundai foot the bill for an upgrade?
You may be covered by this class-action lifetime guarantee and qualified for a free engine replacement if you own a car with a Hyundai Theta II 2.0-liter turbo or 2.4-liter naturally aspirated engine.