Hyundai Reaches Proposed Settlement in Engine Defect Class Action Lawsuits

UPDATE: On March 9, 2021, the Superior Court of Justice, Ontario, approved the settlement agreement. Top Class Actions will let you know when the claims process opens. Read the Court’s approval order here.

Owners and lessees of certain 2011 through 2019 model-year Hyundai vehicles may be able to take advantage of benefits in an engine defect class action settlement. The settlement reportedly ends five class action lawsuits lodged against the carmaker over allegations it ignored and even denied repairs to certain vehicles with engine defects that led to car fires.

Engine Defect Class Action Settlement Vehicles

Vehicles covered by the settlement agreement include the following:

• 2011-2019 model year Hyundai Sonata vehicles,
• 2013-2019 model year Hyundai Santa Fe Sport vehicles, and
• 2014, 2015 and 2019 model year Hyundai Tucson vehicles

To be covered, vehicles must have been equipped with 2.0 or 2.4 litre Theta II gas direct injection engines; however, they do not need to have experienced any issues related to the engine defect alleged in a number of class action lawsuits lodged against Hyundai and ended with this settlement agreement.

Hyundai owners and lessees can check to see if they qualify for this class action settlement by checking if their vehicle’s VIN is included either online or by calling 1-833-683-5860.

Hyundai Engine Defect Class Action Settlement Benefits

The engine defect class action settlement provides the following benefits to Class Members:

• Warranty extension
• Reimbursement for past repairs
• Reimbursement for expenses from past repairs
• Compensation for a sold or trade-in vehicle
• Compensation for loss of vehicle to engine fine
• Rebate program for trade-ins
• An informational pamphlet

All Class Members, even those who have not experienced problems related to the alleged engine defect, can take advantage of the warranty extension under the terms of the class action settlement. The benefits include a conversion of the Powertrain Warranty to a Lifetime Warranty. The warranty extension applies to Class Members who own covered vehicles with Knock Sensor Detection Software with a completed update.

The extended warranty will cover various types of damage to the short-block assembly, as well as the damage caused by a connecting rod bearing failure in the rest of the long block assembly. In addition, a rental reimbursement of up to $40 a day is available under the warranty extension.

Class Members who had to pay money to repair covered vehicles may be able to claim reimbursement, including a free oil and filter change and tire rotation at a Hyundai dealer, along with an inconvenience award if the repair was delayed for more than 60 days. Compensation for inconvenience includes a $65 dealer credit for 61-to-90-day delays and a $100 credit for delays between 91 and 120 days, with an additional $35 credit for each 30-days of additional delay.

Class Members can also claim expenses related to repairs of the alleged engine defect, including towing and other required services.

Class Members who sold or traded-in their covered vehicle and lost money on the deal can claim the loss, as well as an additional payment of $140. The vehicle must have experienced a problem related to the alleged defect, such as the oil light turning on, stalling, or engine noise, but the Class Member must not have first gotten the repair. Under the terms of the settlement, the Class Member can claim the difference between the fair market value of the vehicle and what they got for it, along with an additional $140.

If the covered vehicle suffered an engine fire and was deemed a total loss, Class Members can claim the value of the vehicle, along with a $140 additional payment, minus any funds they received as a result of the loss.

Class Members can also take part in a Trade-In Rebate Program. Rebates under the program are calculated using the trade-in value of the vehicle and the model year of the vehicle. Maximum rebate amounts are up to $1,750 for 2011 through 2014 vehicles; $1000 for 2015 through 2016 vehicles; and $500 for 2017 through 2019 vehicles.

Finally, Hyundai has agreed to provide informational pamphlets to Class Members about any additional recommended guidance related to the maintenance of vehicles covered by the engine defect class action settlement.

How to Claim Compensation 

A hearing on the approval of the engine defect class action settlement is scheduled for Feb. 23, 2021. If approved, Class Members will be able to start submitting claims online or by mail. Claim forms must include all required supporting documentation and be submitted by the deadline set at the approval hearing.

Top Class Actions will update this article if the court approves the Hyundai settlement and the claim filing period opens. Click on the “Follow Article” at the top of this page to get the latest updates about this settlement by using your free Top Class Actions account. For the latest updates, keep checking ca.TopClassActions.com or sign up for our free newsletter.

To exclude yourself from this class action settlement, you must submit an opt-out form by Feb. 12, 20201.

Do you own a Hyundai? Have you experienced any issues with your vehicle? Will you file a claim if this class action settlement is approved? Tell us your story in the comment section below!

The lead plaintiffs and Class Members are represented by Michael Peerless of McKenzie Lake Lawyers, Jay Strosberg of Strosberg Sasso Sutts LLP, K.S. of Garcha & Company, and Evatt Merchant and Christine Nasraoui of Merchant Law Group LLP.

The Hyundai Canada Class Action Lawsuits are Pelletant v. Hyundai Auto Canada Corp., et al., Case No. 500-06-001013-198, Before the Superior Court of Québec, District of Montreal, Killoran v. Hyundai Auto Canada Corp., et al., Case No. S-194327, in the Supreme Court of British Columbia, Canada, McBain v. Hyundai Auto Canada Corp., et al., Case No. CV-19-00001186-OOCP in the Ontario Superior Court of Justice, Asselstine v. Kia Canada Inc., et al., Case No. CV-19-00001302-0000 in the Ontario Superior Court of Justice, and Papp v. Kia Motors America Inc., et al., Case No. QBG795/19 in the Court of Queen’s Bench for Saskatchewan.

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