Hyundai Agrees to Class Action Settlement for Engine Defects

Hyundai Motor Company has agreed to settle a class action lawsuit for alleged engine defects that can cause engine seizure, stalling, engine failure, and possibly engine fire. This settlement aims to provide financial and other benefits to affected vehicle owners and lessees.

Who Benefits? Owners and lessees of certain Hyundai vehicles who purchased or leased the vehicle in the United States, including those purchased while the owner was abroad on active U.S. military duty, may benefit from this settlement.

How much can I get? The settlement provides various financial compensations, including reimbursements for past repairs, compensation for repair-related transportation and towing expenses, and compensation for loss of vehicle involved in a qualifying fire.

Important Dates

• Deadline to File a Claim: July 8, 2024
• Deadline for Claimants to install KSDS: November 4, 2023

Can I Claim an Award?

To be eligible for the settlement, you must be an owner or lessee of a Class Vehicle, which includes certain Hyundai models equipped with specific engines. The Class Vehicles are:

• 2011–2015 model year Hyundai Sonata Hybrid (HEV) vehicles with a Theta II 2.4-liter MPI Hybrid engine
• 2016–2019 model year Hyundai Sonata Hybrid/Plug-In Hybrid (HEV/PHEV) vehicles with a Nu 2.0-liter GDI Hybrid engine
• 2010–2012 model year Hyundai Santa Fe vehicles with a Theta II 2.4-liter MPI engine
• 2010–2013 model year Hyundai Tucson vehicles with a Theta II 2.4-liter MPI engine
• 2014–2021 model year Hyundai Tucson vehicles with a Nu 2.0-liter GDI engine
• 2014 model year Hyundai Elantra Coupe vehicles with a Nu 2.0-liter GDI engine
• 2014–2016 model year Hyundai Elantra vehicles with a Nu 2.0-liter GDI engine
• 2014–2020 model year Hyundai Elantra GT vehicles with a Nu 2.0-liter GDI engine
• 2012–2017 model year Hyundai Veloster vehicles with a Gamma 1.6-liter GDI engine

Who is Excluded?

The Class excludes all claims for death, personal injury, property damage, and subrogation.

• Consumers or businesses that have purchased Class Vehicles previously deemed a total loss (e.g., salvage)
• Owners or lessees who rent or previously rented the Class Vehicle for use by third-party drivers
• Individuals and commercial entities engaged in the business of buying, selling, or dealing in motor vehicles (e.g., new and used motor vehicle dealerships); banks, credit unions, or other lienholders
• Current or former owners of a Class Vehicle who previously released their claims against Hyundai or Kia with respect to the same issues raised in this class action are excluded.

What Awards Can Class Members Claim?

The settlement provides several types of awards for class members:

First, Hyundai is extending the Powertrain Limited Warranty to a 15-Year/150,000-Mile Limited Warranty from the date of the vehicle’s original retail delivery for current and subsequent owners of Hyundai Class Vehicles. This Extended Warranty covers damage to the short block assembly and long block assembly caused by connecting rod bearing failure.

Second, Hyundai will reimburse you in full for money you spent on Qualifying Repairs that occurred before June 7, 2023, if the vehicle was within 15 years from the date of original retail delivery or 150,000 odometer miles, whichever came first. In certain instances, you may receive an additional $150 goodwill payment and/or inconvenience payment.

• Qualifying Repairs: Repairs performed to address hole-in-block symptoms, engine seizure, or engine fire.
• Goodwill Payment: If you were denied an in-warranty repair and subsequently obtained the Qualifying Repair elsewhere, you are eligible to receive an additional $150 goodwill payment.

Third, money you spent on rental cars, ride-shares, or similar transportation services will be reimbursed for up to a maximum of $80 per day, and towing services will be reimbursed in full as long as these expenses are reasonably related to obtaining a Qualifying Repair.

Fourth, you may be entitled to compensation if you experienced prolonged delays (exceeding 60 days) in obtaining a Qualifying Repair performed by an authorized Hyundai dealer.

• For delays between 61 and 180 days, you will be entitled to $75.
• For delays of 181 days or more, you are entitled to $100, plus $100 for each additional 30-day period of delay.

Fifth, money you spent on reasonable towing services will be reimbursed in full if you experience a Qualifying Failure or Qualifying Fire within 150 miles of your home.

• If the Qualifying Failure or Qualifying Fire occurred within 150 miles of your home, you can get reimbursed for up to $125 for actual transportation expenses incurred on the day of the Qualifying Failure or Qualifying Fire.
• If the Qualifying Failure or Qualifying Fire occurred more than 150 miles away from your home, you can get reimbursed for a maximum of three (3) days of up to $300 for the first day, up to $200 for the second day, and up to $100 for the third day for transportation, lodging, and reasonable meal expenses.

Sixth, if your Class Vehicle experienced a Qualifying Failure or Qualifying Fire within 15 years from the date of original retail delivery or 150,000 odometer miles, whichever came first, and before June 7, 2023, and you sold or traded in the Class Vehicle without first getting it repaired, you may receive compensation for any resulting negative effect on fair market value of the Class Vehicle received in the sale or trade.

Seventh, if your Class Vehicle is lost due to a Qualifying Fire within 15 years from the date of original retail delivery or 150,000 odometer miles, whichever comes first, you may receive compensation for the value of the vehicle, and an additional $150 goodwill payment.

Eighth, you may be entitled to a rebate payment if after June 7, 2023, you lose faith in your Class Vehicle as a result of this Settlement, you experience a Qualifying Failure or Qualifying Fire occurring within 15 years from the date of the vehicle’s original retail delivery or 150,000 odometer miles, whichever came first, you sell your vehicle as result, and you purchase a replacement Hyundai vehicle from an authorized Hyundai dealership.

• For model year 2010, 2011, and 2012 Class Vehicles: $2,500
• For model year 2013 and 2014 Class Vehicles: $2,000
• For model year 2015 and 2016 Class Vehicles: $1,500
• For model year 2017, 2018, 2019, 2020, and 2021 model year Class Vehicles: $1,000

Hyundai Vehicles Involved in the Settlement

The settlement involves the following Hyundai vehicles originally equipped with or replaced with the respective corresponding genuine MPI or GDI engine within OEM specifications:

• 2011–2015 model year Hyundai Sonata Hybrid (HEV) vehicles with a Theta II 2.4-liter MPI Hybrid engine
• 2016–2019 model year Hyundai Sonata Hybrid/Plug-In Hybrid (HEV/PHEV) vehicles with a Nu 2.0-liter GDI Hybrid engine
• 2010–2012 model year Hyundai Santa Fe vehicles with a Theta II 2.4-liter MPI engine
• 2010–2013 model year Hyundai Tucson vehicles with a Theta II 2.4-liter MPI engine
• 2014–2021 model year Hyundai Tucson vehicles with a Nu 2.0-liter GDI engine
• 2014 model year Hyundai Elantra Coupe vehicles with a Nu 2.0-liter GDI engine
• 2014–2016 model year Hyundai Elantra vehicles with a Nu 2.0-liter GDI engine
• 2014–2020 model year Hyundai Elantra GT vehicles with a Nu 2.0-liter GDI engine
• 2012–2017 model year Hyundai Veloster vehicles with a Gamma 1.6-liter GDI engine

Is Proof Required to Claim the Reward?

Yes, proof is required to claim the reward. In addition to a completed Claim Form, you will need to submit supporting documentation. For benefits relating to a Qualifying Repair, this generally includes at least:

• Proof that you owned or leased your Class Vehicle
• Proof that the Qualifying Repair actually occurred, like a repair order
• Proof you paid for the Qualifying Repair and any other repair-related expenses
• Related insurance paperwork if any

If you received the Qualifying Repair at a Hyundai dealership, you are strongly encouraged to submit repair orders, your communications with the dealership, and any other documentation related to the Qualifying Repair, so that Hyundai can take any necessary steps to acquire additional information that may be needed to assist with approving the Claim.

For benefits that do not require you to get a Qualifying Repair, you will similarly need to submit:

• Proof that you owned or leased your Class Vehicle
• Proof that a Qualifying Failure or Qualifying Fire actually occurred, like a police report and/or insurance paperwork
• Proof you paid for expenses incurred as a result
• If applicable, proof of sale or trade-in and value received for the sale or trade-in of your vehicle

How to Claim Your Award

To claim your award, you need to fill out the Claim Form, include the required documentation, and submit it online, by mail, or email to the address listed on the Claim Form.

Ensure you keep a copy of your completed Claim Form and all documentation you submit for your own records. If you fail to submit a Claim Form and supporting documents by the required deadline, you will not receive compensation for prior expenses.

Why is There a Class Action Settlement?

The class action settlement was reached to avoid the cost and risk of further litigation, including a potential trial, and to provide relief to the affected class members. The plaintiffs alleged that the Class Vehicles suffer from a defect related to connecting rod bearing failure within the rotating assembly of the engine, which can cause engine seizure, stalling, engine failure, and engine fire.

The settlement aims to address these issues by providing financial compensation and extending the Powertrain Limited Warranty for the affected vehicles. The next steps involve the final approval of the settlement and the distribution of the awards to the eligible class members.