CALIFORNIA – California Attorney General Rob Bonta on December 15 joined a bipartisan coalition of 36 attorneys general to announce a settlement with Kia America, Hyundai Motor Company, and affiliated entities.
Owners of eligible Hyundai or Kia vehicles that were stolen or targeted in an attempted theft may qualify for cash compensation of up to $4,500.
The settlement addresses the sale of millions of vehicles that contained significant security weaknesses, including the lack of industry-standard anti-theft technology.
“Cars are often one of the largest purchases a family will ever make — Californians shouldn’t have to worry that manufacturers are cutting corners that could put their purchase at risk,” Bonta said.
Hyundai and Kia thefts rose about 85% in 2022
From 2011 to 2022, Kia and Hyundai sold cars with easily bypassed ignition locks and without engine immobilizers—standard anti-theft devices included on nearly every other new car, including the same models sold in Canada and Europe.
These security flaws made Hyundai and Kia vehicles easy to steal, fueling a nationwide surge in car thefts and joyriding that continues to threaten public safety.
On social media, thieves posted videos showing how even teenagers could exploit the flaw to hotwire Hyundai and Kia vehicles, encouraging others to steal them as well.
In Los Angeles, Hyundai and Kia thefts rose about 85% in 2022, making up roughly 20% of stolen cars, up from 13% in 2021.
In 2024, Hyundai and Kia models ranked first, second, and fifth among the most stolen vehicles nationwide.
The settlement resolves claims that the companies violated federal motor vehicle safety standards and California’s Unfair Competition Law.
Compensation up to $4,500 for total loss
Under the proposed settlement, pending court approval, Hyundai and Kia will equip all future U.S. vehicles with anti-theft technology and provide free ignition cylinder sleeve updates to owners or lessees of eligible vehicles.
The cylinder sleeve is a physical device that blocks theft via the common hotwiring method.
The settlement also requires Hyundai and Kia to pay restitution to eligible consumers whose vehicles were damaged by thieves.
Owners of eligible Hyundai or Kia vehicles that experienced a qualifying theft or theft attempt may be eligible for financial compensation.Compensation includes:
- Up to $4,500 for a total loss
- Up to $2,250 for a partial loss
- Up to $375 for reasonable expenses related to a theft attempt
To qualify:
- At the time of the theft or attempt, the vehicle either had the software upgrade installed or an appointment scheduled for the upgrade.
- The theft or attempt occurred on or after April 29, 2025, and before the vehicle received the free zinc sleeve installation, or by March 31, 2027.
March 31, 2027 deadline
The deadline to submit a claim is March 31, 2027. Funds are limited and will be disbursed on a rolling basis until the limited fund is exhausted.
Once the funds are exhausted, no further claims will be paid.
For more information, visit https://www.hkmultistateimmobilizersettlement.com/
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