Some car theft victims could get cut of major settlement

MEMPHIS, Tenn. — Memphis Police say auto thefts skyrocketed since the pandemic, and a large number of the cars stolen were Hyundais and Kias.

Now, the owners of those cars may get some relief, with a class action settlement and security software upgrades.

Since 2020, the number of Hyundais and Kias reported stolen nationwide spiked more than 1,000 percent.

MPD and the Shelby County Sheriff’s Office had to pull staff and launch new units to tackle auto thefts. Memphis police reported 22,000 vehicles stolen in the past two years, and Kias and Hyundais were at the top of the list.

More than 22,000 vehicle thefts in Memphis in 2 years

“One side of it was basically scraped clean,” said Michael Phillips, talking about the Hyundai Tuscon he had for only four days before he says some kids stole it while he was sleeping.

Police caught them hours later just blocks from his Midtown home.

“They already had two Hyundais. They bailed out of the car in the midst of all that,” he said. “Continued driving through a yard into a fence and into a house. The side of the car that hit the fence was completely done.”

Some of the kids arrested were as young as 13 years old.

“The inside of the car was a dumpster. It had been smoked in. The cigarettes were burnt into whatever was close I guess,” he said.

From there, it didn’t get any better. Phillips reached out to us again to let us know the frustrating aftermath that took months to sort out and left him paying an extra $2,000 that insurance didn’t cover.

“Getting the insurance claim. In our case, there was a big to-do because it was stolen so quickly, we never got a title and never got that stuff. Big kerfuffle,” he said.

The thefts led to a major class-action lawsuit. Plaintiffs stated the car manufacturers failed to install an “immobilizer,” which is “a common anti-theft device in modern cars.”

Kia, Hyundai settle class-action lawsuit after a rash of thefts due to security flaw

They claim it left key-start vehicles from 2011 through 2022 “vulnerable” and ignited “rampant theft and damage.” Social media made it worse as people continued to share videos of just how easy it was to steal the cars.

Last fall, months after Phillips’ car was totaled, he said Hyundai sent a letter about a software update they would provide to prevent thefts. Then, came another letter last month about the class action lawsuit.

A federal judge granted preliminary approval to a revised settlement, meaning he and millions of others may be eligible to get some money back.

In lengthy email statements from Kia and Hyundai, both tell us they’re “pleased this will allow customers who have been impacted by vehicle theft to receive several additional benefits.”

Hyundai added it is “committed to the comprehensive actions” and is “undertaking to assist customers and communities affected by the persistent thefts” of certain vehicles.

It’s responded with “wide-ranging initiatives to enhance the security” like free “software upgrades” to “prevent the theft mode popularized on social media.” Cars that can’t accommodate the software can get ignition cylinder protectors.

Kia is offering those same security upgrades. Both Hyundai and Kia held events in Memphis earlier this month to install the devices.

Kia owners line up for anti-theft software upgrade

“It will do two things, it will run the alarm for an extended period of time — thieves don’t like that — and it will also disable the ignition system for an extended period of time,” said James Bell, who is head of corporate communications.

Kia says it also distributed more than 340,000 free steering wheel locks nationwide. Thousands were handed out locally by Memphis police.

Phillips said that doesn’t make up for the harm already caused.

“There are other people who I have heard about. Lives have been turned completely upside down because of this. Their quality of life and well-being is damaged and haven’t recovered because of it,” Phillips said.

He believes too much blame has fallen on the juveniles for stealing the cars, but not the system actors, especially the automakers.

“There is no degree of accountability for them. They have this claim that will cost them money, but they’re still selling the cars,” Phillips said.

What to know more about the class action settlement?

Kia and Hyundai both created websites where you can access additional information on the settlement. The deadline to submit a claim is next January.

It may take time to get money back, and keep in mind that the court still has to approve this final settlement which is expected to happen in July.

For Hyundai’s website: click here

For Kia’s website: click here

If you are a Kia customer and would like a free steering wheel lock: click here

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