Kia and Hyundai settle class action lawsuit after theft surge in St. Louis, nationwide

Kia and Hyundai will pay more than $200 million for about 9 million vehicles that lack a standard anti-theft security device, allowing thieves to break into and drive off in many models of the cars in less than 90 seconds. The size of the car manufacturers' total payout will depend on how many eligible drivers apply for repayment.

Owners can receive up to $6,125 for out-pocket-damages, including the total loss of their car. They're also eligible for up to $3,375 for personal property, insurance-related expenses and other expenses such as alternative transportation.

Car owners can fill out a form at www.hbsslaw.com/cases/hyundai-kia-usb-car-theft-defect to determine if they're eligible.

Rates of stolen Kias and Hyundais exploded in the St. Louis region last year — a trend also seen nationally because of a viral TikTok video that shows how to break into and drive off in many 2011-21 models of the South Korean-made vehicles using just a screwdriver and a USB charging cable. The method can be used on some models of those cars because manufacturers did not install engine immobilizers, an electric anti-theft security device that prevents most vehicles from being started unless a code is transmitted from the vehicle's smart key.

The surge in thefts put a strain on local resources, and police tied stolen cars to violent crimes including shootings and deadly hit-and-runs. St. Louis officials in March followed other municipalities across the country and filed a federal lawsuit, separate from the class action lawsuit, against the manufacturers.

Erin McGowan, an associate St. Louis city counselor, told the Post-Dispatch on Friday she could not comment on the status of that lawsuit because the city cannot discuss pending litigation.

As part of Thursday's class-action settlement, a software upgrade will be automatically installed when an eligible car is brought into a dealership for any kind of maintenance or repairs, according to the four law firms representing the plaintiffs in the case.

Only some models of Kia and Hyundai are eligible for the upgrade. Owners of cars that aren't eligible but also don't have engine immobilizers can receive reimbursement of up to $300 to pay for the installation of a glass breakage alarm, other anti-theft systems or steering wheel lock.

"We believe this settlement offers comprehensive, welcome relief for the class that will serve as a lesson to automakers to not overlook such integral, basic safety features," said Roland Tellis, an attorney with the law firm Baron & Budd, in a statement.

The two car manufacturers, owned by the same parent company, said on Thursday in a statement they appreciated the opportunity to "provide additional support" to car owners.

The number of Kias and Hyundais stolen in St. Louis in 2022 (3,958) surpassed the number of all cars stolen in 2021 (3,874). In all, 7,393 cars were reported stolen in 2022 in the city, a 91% increase from the previous year.

So far this year, rates have remained high in the St. Louis area but have dipped significantly from last year's peak. St. Louis police have reported 1,089 stolen Kia and Hyundais in the city through the end of April. This time last year, that number was 147, as thefts did not begin to increase until May 2022.

Police have tied the stolen cars to violent crimes, including shootings and deadly hit-and-runs, as well as damage to city property, including fire hydrants, street signs and traffic signals.

In a response to St. Louis officials' letter threatening a lawsuit, the companies insisted they were not responsible for the ballooning theft rates.

And as theft rates persisted, car insurance companies began to take action, as well. Progressive and State Farm late last year began declining to open new policies on Kias and Hyundais altogether in some parts of the U.S., including the St. Louis region, while drivers with existing plans were stuck paying increasingly high premiums.

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