$9 Million Kia Hyundai Lawsuit Settlement, Get Up to $4,500 Cash or Free Security Upgrades – File by March 31, 2027
Kia and Hyundai agreed to pay $9 million to settle claims they sold vehicles without basic anti-theft technology, contributing to a nationwide theft surge. Claim deadline is March 31, 2027. Owners of 2011-2022 Kia and Hyundai vehicles without engine immobilizers can file for cash compensation up to $4,500 for total loss, up to $2,250 for partial loss, or up to $375 for attempted theft expenses. Free security upgrades are also available.
How to File Your Claim Right Now
Hyundai Settlement Website: https://www.hkmultistateimmobilizersettlement.com/
Kia Settlement Website: https://www.hkmultistateimmobilizersettlement.com/
Hyundai Contact:
- Phone: 1-877-409-4173
- Email: [email protected]
- Kia Contact:
- Phone: 1-844-655-4191
Mailing Address: Hyundai/Kia Multistate Settlement Administrator
P.O. Box 369
East Brunswick, NJ 08816
Claim Deadline: March 31, 2027
Claims are paid on a rolling basis until funds are exhausted. File early to ensure you receive compensation.
Who Qualifies for This Settlement?
You may qualify if you own or lease a 2011-2022 Kia or Hyundai vehicle that meets these requirements:
Required Criteria:
- Vehicle was not factory-equipped with an engine immobilizer
- Vehicle received a software upgrade or had an upgrade appointment scheduled
- Qualifying theft or attempted theft occurred on or after April 29, 2025 but before your vehicle received the free zinc sleeve installation or March 31, 2027—whichever comes first
Important: The theft or attempted theft must have occurred AFTER April 29, 2025 to qualify for this settlement.
What Cash Compensation Is Available?
Total Loss: Up to $4,500
If your vehicle was stolen and declared a total loss by your insurance company.
Partial Loss: Up to $2,250
If your vehicle was stolen and recovered but sustained damage.
Attempted Theft: Up to $375
If someone attempted to steal your vehicle but was unsuccessful.
Payments are distributed on a rolling basis until the $4.5 million consumer restitution fund is exhausted.
What Free Security Upgrades Are Offered?
Kia and Hyundai provide two free security upgrades:
Software Upgrade:
Updates the anti-theft alarm software to extend alarm length from 30 seconds to 1 minute.
Zinc-Reinforced Ignition Cylinder Protector (Zinc Sleeve):
Physical hardware upgrade that reinforces the ignition cylinder to prevent USB cable bypass method.
Approximately 8.3 million Hyundai and Kia vehicles are eligible for these upgrades.
What Vehicles Are Covered?
The settlement covers 2011-2022 Kia and Hyundai vehicles manufactured without engine immobilizers. These are typically vehicles with:
- Traditional key ignition (turn-to-start)
- Steel keys (not key fobs)
- No push-button start
Vehicles NOT covered:
- Models with factory-installed engine immobilizers
- Models with key fobs and push-button start systems
- 2023 and newer models (all come standard with immobilizers)
Check your VIN at the settlement website to confirm eligibility.
What Was the “Kia Challenge”?
The “Kia Challenge” was a viral TikTok trend that started in July 2022. A content creator posted a video showing how to steal certain Kia and Hyundai vehicles using only a USB cable and screwdriver in under 30 seconds.
The method exploited a security flaw in vehicles without engine immobilizers. Thieves would break into the vehicle, remove the steering column cover, and insert a USB-A connector into the exposed ignition cylinder to bypass the ignition system.
The hashtag “Kia Boys” accumulated over 33 million views on TikTok before the platform began removing videos.
How Bad Did the Theft Problem Get?
The statistics were staggering:
National Impact:
- Theft rates for affected models surged by 1,000% between 2020-2023
- At least 8 deaths linked to stolen vehicles
- 14 reported crashes connected to the TikTok challenge
City-Specific Data:
- Milwaukee: 66% of stolen vehicles were Kias or Hyundais
- Chicago: Thefts increased by 800% in one month
- Los Angeles: 85% increase in Kia/Hyundai thefts in 2022, accounting for 20% of all car thefts
- St. Petersburg, Florida: More than one-third of all car thefts since mid-July 2022 linked to the challenge
- New York City: Kia and Hyundai thefts jumped 50% after the trend hit
Children as young as 11 years old were reported participating in these thefts.
Tragic Consequences of the Trend
Buffalo, New York (October 2022):
Six teenagers aged 14-19 stole a Kia Sportage. Four died when they crashed the stolen car.
Johnston City, Illinois (April 2024):
Four teenagers aged 13-17 were involved in a fatal crash after stealing a 2013 Hyundai Elantra. The 16-year-old driver was killed.
Philadelphia (May 2024):
Five teenagers struck and killed a 55-year-old motorcyclist while driving a stolen Kia.
Lakewood (date not specified):
A 16-year-old boy drowned in a swamp while fleeing police after participating in the Kia Boys trend.
What Attorneys General Said About the Settlement
Letitia James, New York Attorney General:
“Hyundai and Kia’s reckless decision to forgo anti-theft measures led to a wave of car thefts that had deadly consequences. This settlement ensures Hyundai and Kia owners will be able to protect their cars at no cost.”
The settlement was negotiated by a bipartisan coalition of 36 state attorneys general, representing a nationwide effort to address the crisis.
What Documentation You Need to File
For Total Loss Claims:
- “Total loss” letter from your insurance company
- Proof of vehicle ownership
- Police report (recommended)
For Partial Loss Claims:
- “Partial loss” letter from insurance company showing damage
- Proof of payment of insurance deductible
- Repair receipts or estimates
- Police report (recommended)
For Attempted Theft Claims:
- Copy of police report documenting the attempted theft
- Photos of damage (if any)
- Proof of any reasonable theft-related expenses paid
What the Lawsuit Alleged
Attorneys general claimed Kia and Hyundai:
- Failed to equip millions of vehicles with basic anti-theft technology
- Sold vehicles without industry-standard engine immobilizers
- Were slow to respond to the theft crisis
- Offered insufficient fixes that were easily bypassed
Engine immobilizers have been standard on most vehicles for decades. They prevent the engine from starting unless the correct key with a transponder chip is present.
Why Didn’t These Vehicles Have Immobilizers?
Until 2011, most Hyundai and Kia vehicles were manufactured with immobilizers. Kia vehicles manufactured from 2011 to 2021 for the US market and Hyundai vehicles manufactured from 2016 to 2021 for the US market that use steel keys lacked this basic security feature.
All 2022 and newer Kia models come standard with immobilizers. Hyundai followed suit, making immobilizers standard on all new models.
What Kia and Hyundai Have Done
Software Update Campaign (February 2023):
Both companies launched free software patches for eligible vehicles. About 3.8 million Hyundai cars and 4.5 million Kia cars qualified for updates.
Physical Security Kits:
Hyundai initially offered a $170 security kit but later made it free. The zinc-reinforced ignition cylinder protector physically prevents the USB cable bypass method.
Steering Wheel Lock Distribution:
Both companies partnered with 120 law enforcement agencies nationwide to distribute free steering wheel locks to eligible drivers in impacted areas.
Timeline Acceleration:
Hyundai rolled out the software upgrade two months ahead of schedule due to the severity of the crisis.
How Many Vehicles Still Need Fixes?
As of late November 2024, CARFAX estimated approximately 391,500 Hyundai and Kia vehicles in Texas alone still needed crucial security updates.
This represents only a modest improvement from 2023, when 433,000 Texas vehicles were vulnerable.
Current Status of the Settlement
October 1, 2024: Federal court granted final approval to the amended settlement agreement
November 2024: Two class members/objectors appealed the decision to the Ninth Circuit Court of Appeals
Current Status: Appeals are delaying payment distribution. Approved settlement payments cannot go out until appeals are resolved.
Estimated Resolution: Between September 2025 and June 2026 (possibly already resolved as of January 2026)
Although the timeline is typical for automotive class settlements, payments have been held up by these objections.
Separate $145 Million Class Action Settlement
This $9 million multistate settlement is separate from a larger $145 million class action settlement covering similar theft-related claims.
That settlement covers:
- Reimbursement for stolen vehicles
- Insurance deductibles
- Higher insurance premiums
- Other theft-related expenses
- Payment ranges from $250 to 60% of black book value depending on circumstances
Claim deadline for the $145M settlement: Originally April 28, 2025, but delayed due to appeals
Visit the Hyundai and Kia settlement websites for more information about that separate settlement.
Your Legal Rights as a Class Member
You can:
File a claim – Submit documentation by March 31, 2027 to receive compensation
Do nothing – You’re still bound by the settlement terms but receive no payment
There is no deadline for exclusion and objection and no final settlement hearing for this multistate settlement.
What Happens If You Don’t File?
If you’re eligible but don’t file by March 31, 2027:
- You forfeit any settlement payment
- You still benefit from the free security upgrades if you get them installed
- Claims are paid on a rolling basis until funds run out – filing late may mean funds are exhausted
How to Check If Your Vehicle Needs Security Upgrades
Check Your VIN:
Visit the Hyundai or Kia settlement website and enter your Vehicle Identification Number (VIN) to see if your vehicle qualifies for free security upgrades.
Contact Your Dealer:
Call your local Hyundai or Kia dealership to schedule your free software update and zinc sleeve installation.
Get It Done ASAP:
Even if you haven’t experienced theft or attempted theft, getting the security upgrades protects your vehicle from future incidents.
Cities That Sued Kia and Hyundai
Multiple cities took legal action against the automakers, claiming they were responsible for the theft surge:
- St. Louis
- Cleveland
- Milwaukee
- San Diego
- Seattle
- Columbus, Ohio
These lawsuits pressured the companies to take action and contributed to the eventual settlements.
What Insurance Companies Found
The Highway Loss Data Institute (a unit of the Insurance Institute for Highway Safety) found in September 2022 that Hyundai and Kia cars without immobilizers had significantly higher theft rates than similar vehicles from other manufacturers.
Some insurance companies began refusing coverage or dramatically increasing premiums for affected Kia and Hyundai models due to the theft risk.
Additional State Penalties
Beyond the $4.5 million in consumer restitution, Kia and Hyundai agreed to pay $4.5 million in penalties to participating states to defray investigation costs.
The 36 participating states represent the largest multistate consumer protection enforcement action related to automotive security.
What Kia and Hyundai Say
Both companies maintain their vehicles “meet or exceed Federal Motor Vehicle Safety Standards.”
Neither company admitted wrongdoing as part of the settlement.
Kia stated: “All 2022 models and trims have an immobilizer applied either at the beginning of the year, or as a running change.”
Hyundai emphasized it is “communicating with NHTSA on our many actions to assist our customers.”
What You Should Do Right Now
1. Check your eligibility – Enter your VIN at the settlement website to see if you qualify
2. Get security upgrades – Schedule your free software update and zinc sleeve installation immediately, even if you haven’t experienced theft
3. Gather documentation – If you’ve experienced theft or attempted theft after April 29, 2025, collect police reports, insurance letters, and receipts
4. File your claim – Submit your claim as soon as possible since payments are distributed on a rolling basis
5. Mark your calendar – Claim deadline is March 31, 2027, but file early to ensure funds haven’t been exhausted
6. Use physical deterrents – Until you get the zinc sleeve installed, consider using a steering wheel lock
Frequently Asked Questions
My vehicle was stolen in 2023. Can I still file a claim?
No. For the $9 million multistate settlement, the qualifying theft or attempted theft must have occurred on or after April 29, 2025. However, you may qualify for the separate $145 million class action settlement. Check that settlement website for details.
Do I need to get the security upgrades to file a claim?
Yes. To qualify, your vehicle must have either received the software upgrade or had an upgrade appointment scheduled. The theft must have occurred after the software upgrade but before the zinc sleeve installation.
Can I get both the cash compensation and the security upgrades?
Yes. If you qualify for cash compensation and your vehicle is eligible for security upgrades, you can receive both benefits.
What if my vehicle was stolen multiple times?
You can only file one claim per vehicle. If your vehicle was stolen multiple times, file for the incident with the highest loss amount.
My insurance didn’t cover my deductible. Can I still file?
Yes. You can still file a claim and should include documentation of the theft, even if you didn’t pay a deductible.
What if I sold my vehicle after it was stolen?
You may still qualify if the theft occurred while you owned the vehicle and you meet all other eligibility requirements. Provide proof of ownership at the time of theft.
How long does it take to receive payment?
Payment timing varies. Claims are processed on a rolling basis. It may take several weeks to months after filing for your claim to be reviewed and approved.
What if the $4.5 million runs out before my claim is processed?
Claims are paid on a rolling basis until funds are exhausted. Filing early increases your chances of receiving payment before funds run out.
Do commercial vehicles qualify?
Check the settlement terms. Typically, these settlements cover personal use vehicles. Contact the settlement administrator for clarification if you own a commercial vehicle.
What if I leased my Kia or Hyundai?
Lessees may qualify for benefits. Check the settlement website or contact the administrator to confirm your eligibility status.
My vehicle has a push-button start. Does it qualify?
No. Vehicles with push-button start systems typically have factory-installed immobilizers and are not affected by the vulnerability. Only vehicles with traditional key ignitions (turn-to-start) using steel keys qualify.
Can I opt out and file my own lawsuit?
For this multistate settlement, there is no deadline for exclusion. However, consult with an attorney about your specific situation and whether pursuing individual legal action makes sense.
Important Reminders
- The claim deadline of March 31, 2027 is firm. Late claims may not be accepted.
- This $9 million settlement is separate from the $145 million class action settlement. You may be eligible for both.
- Get your free security upgrades installed immediately, even if you haven’t filed a claim.
- Claims are paid on a rolling basis – file as soon as possible to ensure funds haven’t been exhausted.
- Keep copies of everything you submit.
- Contact the settlement administrator at the phone numbers or email addresses above if you have questions.
Protect Yourself While Waiting for Upgrades
Use physical deterrents:
- Install a steering wheel lock
- Park in well-lit areas or garages when possible
- Use your vehicle’s factory alarm system
- Consider additional security systems
Be aware:
- The USB cable bypass method remains viable until you get the zinc sleeve installed
- Software updates alone may not fully prevent theft
- Thieves may target vehicles without visible deterrents
This article provides general information about the Kia Hyundai multistate settlement and is not legal advice. For specific legal guidance, consult a qualified attorney or contact the settlement administrator.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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