The Hyundai Motor Company settled a proposed class-action lawsuit in April, but a new proposed suit was filed in December by the Kia Motor Company. The U.S. District Court for the Central District of California has consolidated all the claims filed in the case. While the settlements do not necessarily indicate an admission of liability, they do show that Kia is not interested in pursuing litigation further. Whether or not the automaker is willing to settle the case is not clear.
The lawsuit alleges that the cars are defective and dangerous, causing engine seizure, stalling, engine fire, and other problems.
The vehicles are dangerous to drive, especially if you are not experienced. Moreover, the defective vehicles were not repaired under the warranty, and owners have been unable to obtain compensation from the company. Despite this, the automaker denied the allegations and settled the lawsuit.
Both the Hyundai and the Kia recalls were related to the same problem. Metal debris that was fabricated during the assembly line can block the oil flow to the main bearing. This can lead to engine knocking, illuminated oil pressure warning lights, and eventual failure and stall. The defect led to suspicious investigations by the NHTSA, which opened a Recall Query. This resulted in the current lawsuit against the automaker.
In April 2015, the NHTSA opened an investigation into a proposed class-action lawsuit against Kia.
The plaintiffs claimed that Kia knew about the defects and failed to repair them. The National Highway Traffic Safety Administration (NHTSA) is investigating whether the automaker was negligent in handling the recall, which affected approximately 1.6 million vehicles. The carmaker has denied the claims. While the allegations may be true, they are serious and merit further investigation.
In June 2011, a lawsuit was filed against the Korean auto manufacturer. The company agreed to settle the multidistrict litigation after customers complained about the defective engines. In the class-action lawsuit, the alleged defect was described as a faulty Theta engine that causes the engine to circulate unclean oil. This can cause the engine to fail or catch fire, which is the outcome of the class action. In the meantime, a settlement was reached between Kia and its owners.
In May 2017, both Hyundai and Kia settled the proposed class-action lawsuit.
The lawsuit was filed because the automaker knew about the engine defect for years. While the NHTSA did not pursue the case against the carmaker, it did initiate several similar recalls, and the company has subsequently resolved the lawsuits. It is unclear whether the two companies will face a class-action suit. While the lawsuits do not mention the details of the vehicle’s failure, the automakers have agreed to extend the warranty.
According to a class-action lawsuit filed against Kia Motors America, Inc., the company allegedly knowingly recalled a large number of Kia Optimas from 2001 to 2006. The plaintiffs are seeking damages based on these issues and are asking for compensation for repossessed vehicles. The automaker’s lawsuit is a result of these problems and is expected to continue affecting Kia vehicles for the foreseeable future.
A separate lawsuit against Kia Motors America, Inc. and Hyundai Motors Corporation was dismissed last week by a judge in the Central District of California.
It is related to the defective Gamma 1.6L gasoline direct-injection engine in Hyundai/Kia vehicles. Despite the settlement, the automaker still faces a class-action lawsuit. Those eligible may be able to claim benefits that include extended warranties, goodwill payments, and reimbursement for sold cars.
The class-action lawsuit was filed in California against the automaker. The complaint involved a defective Theta engine, which led to many car and SUV fires. The company denied the defect and settled the case after the number of complaints grew. However, the court ordered the automaker to pay $600 million in damages. As a result, the automaker’s settlement will help thousands of affected consumers get their money back.