Final month, Hyundai reached an settlement to settle a category motion lawsuit by paying $200 million. The lawsuit stemmed from a viral TikTok automotive theft problem that precipitated important hurt to Hyundai and Kia house owners in the USA.
Beneath the phrases of the settlement, roughly $145 million could be paid out to compensate people whose vehicles had been stolen or broken throughout theft makes an attempt.
Nonetheless, the decision of the category motion lawsuit didn’t put an finish to the authorized troubles for Hyundai, as New York Metropolis has now filed a lawsuit towards the automaker, accusing it of negligence and being a public nuisance.
In its lawsuit, New York Metropolis particularly alleges that Hyundai prioritized earnings over public security by deliberately excluding frequent anti-theft know-how from sure Kia and Hyundai autos offered within the US market.
The town argues that this resolution was made based mostly on the US market’s rules, or lack thereof, which don’t explicitly require the set up of car immobilizers.
In distinction, Hyundai and Kia autos offered in European and Canadian markets are geared up with car immobilizers as a result of particular rules in these areas.
The absence of efficient anti-theft know-how within the US fashions turned particularly problematic when the “Kia Problem” went viral on TikTok earlier this 12 months.
The problem concerned movies demonstrating how simply sure Hyundai autos might be hot-wired utilizing a easy USB wire. This pattern led to a major surge in automotive thefts, with New York Metropolis reporting a staggering 660% enhance in Hyundai and Kia car thefts in the course of the first 4 months of 2023 in comparison with the earlier 12 months.
New York Metropolis argues that the rise in thefts not solely resulted in additional studies of stolen autos but in addition created further security considerations.
Reckless driving incidents and violent altercations between thieves and car house owners escalated, making town much less protected and placing a pressure on police assets. Because of this, town has taken authorized motion towards Hyundai, searching for punitive and compensatory damages.
New York Metropolis Sues Hyundai for Automobile Theft Problem
New York Metropolis’s lawsuit goals to carry Hyundai accountable for what it perceives as a deliberate disregard for public security. The town accuses the automaker of prioritizing revenue margins over the well-being of its clients and most people.
By failing to incorporate car immobilizers of their US fashions, Hyundai allegedly ignored an important security characteristic that would have prevented or considerably diminished the variety of automotive thefts ensuing from the TikTok problem.
By pursuing authorized recourse, New York Metropolis hopes to make clear the problem and compel automakers to prioritize public security within the design and manufacturing of their autos. The town’s resolution to request a trial by jury signifies its dedication to current its case in courtroom and search a good decision.
The influence of New York Metropolis’s lawsuit towards Hyundai may have far-reaching penalties for each the automaker and the automotive business as a complete. If profitable, the lawsuit might function a precedent for different cities and states to carry automakers accountable for prioritizing revenue over public security.
A profitable lawsuit may considerably tarnish Hyundai’s fame. The allegations of negligence and prioritizing earnings over public security may erode client belief within the model.
Potential automotive consumers might imagine twice earlier than buying Hyundai or Kia autos, fearing that their security options could be compromised in favor of cost-cutting measures. This might end in decreased gross sales and market share for Hyundai, finally impacting the corporate’s monetary efficiency.
The settlement of the category motion lawsuit was not the top of Hyundai’s authorized troubles. New York Metropolis’s lawsuit towards the automaker accuses it of negligence and being a public nuisance as a result of absence of car immobilizers in its US fashions.
The surge in automotive thefts following the viral TikTok problem prompted town to take authorized motion, searching for damages and emphasizing the significance of public security.