Two Korean auto manufacturers reached a $200-million settlement in a class-action federal lawsuit alleging that a security loophole, which later went viral on social media, left the vehicles vulnerable to thefts, according to lawyers for the manufacturers and car owners.
Vehicles made by Hyundai Motor America and Kia America Inc. that did not have push-button ignitions became part of a TikTok challenge because they were more vulnerable to being hot-wired. The viral videos showed how Hyundai and Kia vehicles could be started using a common USB charging cord or a similar metal object.
The settlement extends to about 9 million car owners of Kia or Hyundai vehicles made between 2011-2022, the attorneys said Thursday in a news release by attorneys for vehicle owners and manufacturers. The agreement is valued at up to $200 million, depending on the number of customers who file claims.
