Hyundai, TikTok decided to end a class action lawsuit over a challenge that went viral on its platform that led to auto theft. The automaker agreed to pay up to $200 million in compensation to nearly nine million Hyundai and Kia owners. $145 million of this amount will be paid to customers to cover the loss of their stolen or damaged vehicles that are not covered by insurance. Companies also undertake to cover high insurance premiums and other related costs.
This deal covers a number of Hyundai and Kia vehicles released between the 2011 and 2022 model years. Among them Elantra, Santa Fe And Tucson models such as 2011-2014 model Genesis Coupe also included in this agreement. Brands pay the owner $6,125 in case of complete loss of the vehicle, and $6,125 for damage to the vehicle and personal belongings. up to $3,375 announced that they would pay compensation.
Hyundai will pay customers hundreds of millions of dollars in compensation
Brands that have released an update to prevent theft for certain models, push-to-start feature they have increased the functionality by disabling it and extending the alarm. Vehicles that can receive other updates will be updated until June. As part of the deal, Hyundai and Kia said they will pay drivers up to $300 to help them purchase anti-theft devices. It also stated that they have already provided “tens of thousands” of free steering locks to affected customers, as well as AAA insurance options for customers who are having trouble maintaining insurance coverage.
“Kia Challenge” named challenge was started by “Kia Boyz” and in TikTok videos, immobilizer showed how many Hyundai and Kia vehicles that are not available can be powered using USB cables. Theft cases of vehicles from these brands increased after these videos went viral, and were associated with at least 14 crashes and eight deaths.
This agreement Hyundai And Kia It protects them from a possible high-profile litigation battle, but doesn’t guarantee they’ll completely get rid of lawsuits from cities like Cleveland, San Diego, and Seattle.