AUTONEWS

Hyundai car theft challenges on TikTok generate $200 million class action lawsuit for aggrieved users in the US

Korean automakers Hyundai and Kia reached a $200 million class-action settlement. The action that took place in the USA stemmed from the large number of thefts of these vehicles.

The Internet is vast, allowing its users to spread information that is sometimes harmful. This is also the case with the challenges on TikTok and YouTube, which aimed to steal cars made by Hyundai and Kia. The Internet discovered a weakness of the mentioned cars because some models are not equipped with anti-theft immobilizer. This device would have the role of blocking certain engine functions to prevent unauthorized starting of the car. Thus, many took advantage of this information to go viral on social networks.

The agreement covers up to nine million vehicle owners and is valued at US$145 million. The Hyundai-Kia group could pay up to $6,125 for each person whose car was totaled and $3,375 for damage to the vehicle and personal belongings. Companies will also cover the cost of car rental, taxi and public transport.

What steps will Korean automakers take... In February, Korean automakers said they would provide software updates for the nearly nine million US vehicles that lack anti-theft immobilizers. But for car owners who don't allow such upgrades to be installed, the Hyundai-Kia group will offer up to $300 to buy anti-theft devices such as steering wheel locks or theft deterrents.

Including costs related to the installation of anti-theft software systems and payments for other measures, total settlement expenses are around US$200 million, depending on the number of participating owners.

Several major cities sued the automakers over the thefts. Among them are St. Louis, Missouri, Cleveland, Ohio, San Diego, California, Milwaukee, Wisconsin, Columbus, Ohio, Baltimore and Seattle. TikTok videos on the matter have resulted in at least 14 reported accidents and eight deaths in the US, reports CNN.

Author: Robert Pindic