NEVADA – Attorney General Aaron D. Ford on December 15 joined 36 other attorneys general to announce a settlement with Kia America, Hyundai Motor Company, and affiliates.
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.
Stolen vehicles were also used in other crimes
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.
Thieves discovered a simple way to start Kia and Hyundai vehicles without a key, and videos of the method quickly went viral, fueling a nationwide surge in thefts.
Many stolen vehicles were also used in other crimes and involved in numerous traffic collisions, some fatal.
These actions created a public safety crisis, causing serious harm to communities.
Hyundai and Kia were slow to act, waiting until 2023 to launch a software update campaign for many affected vehicles.
They also offered a zinc-reinforced ignition cylinder protector, but only for about 20% of vehicles ineligible for the software update.
While the companies claimed the software update blocked the viral theft method, the states alleged it was easily bypassed by thieves.
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/
