Biplab Das 
A U.S. judge has dismissed attempts by Hyundai and Kia to halt litigation by insurers seeking over USD 1 billion in a case related to a surge in vehicle thefts influenced by social media. The decision by Judge James Selna sets the stage for a protracted legal battle.
Challenges to dismissal
In a California court decision, Judge Selna rejected Hyundai and Kia’s bids to dismiss a lawsuit filed by insurers. The insurers aim to recover more than USD 1 billion, claiming the automakers owe compensation to drivers whose vehicles were stolen or damaged during a social media-driven theft spree. The judge dismissed arguments that it was unjust for insurers to seek compensation without specifying affected drivers.
Foreseeable thefts due to lack of anti-theft measures
Judge Selna found compelling arguments that the absence of anti-theft devices on 14.3 million Hyundais and Kias between 2011 and 2022 made thefts foreseeable. This assertion contradicts the automakers’ assurances about the safety of their vehicles. The judge emphasised that the complaint suggested thefts were a “predictable consequence” of Hyundai’s and Kia’s actions.
Level of fault on the automakers
Selna highlighted that despite collecting premiums, Hyundai and Kia allegedly failed to incorporate federally required anti-theft devices. He concluded that the level of fault lay almost entirely with the defendants, strengthening the insurers’ case.
Automakers’ response and anti-theft measures
Hyundai expressed disappointment with the decision, anticipating an eventual dismissal. The company mentioned its dealers have installed anti-theft software on over 1 million vehicles. Kia expressed confidence in the lack of merit in the plaintiffs’ claims and affirmed compliance with federal safety and theft-protection standards. Both companies stated their collaboration with law enforcement on matters related to the thefts.
Background on vehicle thefts and TikTok influence
Hyundai and Kia faced criticism and legal challenges for not installing immobilizers, anti-theft devices, in most of their vehicles. The surge in thefts in 2021 was exacerbated by TikTok videos demonstrating how to quickly steal cars lacking push-button ignitions and immobilizers.
Legal landscape and settlement approval
Judge Selna previously granted preliminary approval to a USD 200 million class action settlement covering over 9 million vehicles on October 31. This settlement, if finalised, is valued at USD 200 million, with a significant portion allocated to affected drivers. The judge also oversees litigation by municipalities seeking compensation for costs linked to vehicle thefts.
The judge’s refusal to dismiss the case intensifies the legal challenges for Hyundai and Kia, placing them in a complex legal battle over alleged lapses in anti-theft measures and the resulting impact on vehicle owners.
