Kia-Hyundai Lawsuit 2025: $3,375 Settlement Update and Payment Info

Kia and Hyundai have long been recognized for producing affordable and stylish vehicles. However, a growing controversy involving a surge in car thefts tied to certain models has resulted in a massive class action lawsuit. If you own or previously owned a qualifying Kia or Hyundai vehicle, you could be entitled to compensation from a settlement totaling $200 million. Here’s what you need to know about the Kia-Hyundai Class Action Lawsuit 2025, including eligibility and the expected payment schedule.

Background of the Kia-Hyundai Lawsuit

The lawsuit centers around a critical security flaw: many Kia and Hyundai models sold between 2011 and 2022 lack engine immobilizers, a theft-deterrent system widely adopted in the auto industry since the 1990s. This missing feature made these cars particularly easy to steal, especially with methods shared across social media platforms like TikTok, leading to a spike in auto thefts across the U.S.

In response, numerous U.S. cities—including New York City—took legal action against Hyundai Motor Group, which owns both Kia and Hyundai. The claim was that the manufacturers failed to address a known security gap, thereby endangering public safety and increasing financial burdens on vehicle owners and city resources.

Kia-Hyundai Settlement Amount and Terms

Hyundai and Kia agreed to a $200 million settlement to resolve these claims, avoiding prolonged litigation. This settlement affects nearly 9 million vehicle owners in the U.S., including U.S. territories like Puerto Rico, Guam, and the U.S. Virgin Islands.

Affected customers may receive:

• Up to $3,375 per person or 33% of the value of their loss (whichever is greater)
• $375 reimbursement for insurance deductibles and increased premiums due to theft
• $250 reimbursement for installing glass breakage alarms or theft-prevention devices

The settlement also includes a software upgrade for eligible vehicles that don’t already have immobilizers. However, some vehicles aren’t compatible with the software fix and will only be eligible for financial compensation.

Eligibility Criteria

To be eligible for compensation, you must have owned or leased one of the following Kia or Hyundai models sold without an engine immobilizer between 2011 and 2022:

Year Range	Model
2011–2021	Kia Forte
2021–2022	Kia K5
2011–2020	Kia Optima
2012–2021	Kia Rio
2011–2021	Kia Sedona
2021–2022	Kia Seltos
2011–2022	Kia Sorento
2020–2022	Kia Soul
2011–2022	Kia Sportage

Eligibility extends to residents across all 50 U.S. states, plus the District of Columbia and U.S. territories. Owners who received steering wheel locks through police departments or dealerships may still be eligible for additional compensation.

Settlement Payment Dates

As of now, final approval from the court is pending. Once approved, payments are expected to roll out in phases. Hyundai and Kia also announced they will release a software patch for around 8.3 million vehicles as part of this effort to curb theft.

What You Need to Do

Owners of eligible vehicles should:

1. Check eligibility on the official settlement website.
2. Submit a claim form with proof of ownership or lease, and any theft or repair documentation.
3. Track settlement approval status and updates on payment distribution.

Key Takeaways

The Kia-Hyundai class action lawsuit underscores the importance of basic security features in modern vehicles. While the automakers deny any wrongdoing, they’ve chosen to settle to provide relief to affected customers and restore consumer trust.

If you qualify, don’t miss the opportunity to claim your portion of the $200 million settlement, either through a software update, reimbursement, or both.

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