Hyundai, Kia Hit with $1B TikTok Theft Lawsuit

Korea Auto Co Struggles Financially

The tribunal has denied Hyundai and Kia’s requests to dismiss a lawsuit regarding the widespread stealing of older vehicles shared on TikTok. This scandal has been much speculated about by the automakers, yet it appears they will have to answer for this in court.

U.S. District Court Justice Jimmy Selna in Santa Ana, California, disregarded the claims of Hyundai and Kia that insurers did not possess the right to reclaim losses as they argued that they had acquired premiums throughout the dispute and had accepted risk, according to Reuters. Judge Selna also concluded that the lack of anti-theft devices on 14.3 million vehicles distributed by both automakers from 2011 and 2022 likely led to the thefts.

“Judge Selna stated that, despite having received premiums, the defendants allegedly neglected to include any anti-theft device as required under federal regulations, thus making them almost entirely responsible for the fault.”

Hyundai revealed their disappointment after Selna’s decision, yet assured that U.S. dealerships have already set up security software on over a million cars. Introduced this year, the free update modifies the vehicle control system to turn on an ‘ignition off’ mechanism when the alarm is triggered by a fob. Nevertheless, the TikTok craze persists and has become a dismay to car owners.

Kia contests that the plaintiffs’ lawsuits lack foundation and declared that all its cars observe government-mandated security and prevention of theft regulations.

Previously, the carmaker companies presented a lawful compromise worth $200 million to assist those affected clients who didn’t have an insurance policy or presently grapple with high insurance rates due to Hyundai and Kia thievery.

Selna rejected the offer put forth in the Hyundai and Kia class action lawsuit, deeming it to be “not fair and adequate” for those affected. Currently, over 9 million vehicles are suffering from this issue. The settlement was not accepted, leaving those affected without a resolution at this time.

The usage of TikTok as a platform for the ‘Kia Boyz’ to broadcast how effortlessly cars such as the Kia Soul and Hyundai Elantra may be burgled via only a USB link and a screwdriver has become an exceptionally widespread occurrence. In no time at all, these vehicles could be taken away by unlawful thieves.

Legal action has been taken against Hyundai and Kia due to the insecurity of their automobiles. At the outset of the year, multiple state prosecutors requested that these corporations carry out a recall, expressing their belief that proprietors and citizens alike were in danger as a result of their lack of consideration.

It appears that there is no reasonable path forward for Hyundai and Kia but to shell out the funds or find a way to demonstrate their innocence. Increasingly, it looks as if the prior option is becoming increasingly unavoidable.

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