Facts

Plaintiff Cara Centko and Jenn Lazar filed a class action lawsuit against defendants Kia Motors America, Inc., Kia Motors Corporation, Hyundai Motor America, Inc. and Hyundai Motor Company, Ltd for violation of California's Consumer Legal Remedies Act; violation of California Unfair Competition Law, violation of the California False Advertising Law; violation of the Song-Beverly Act - Breach of implied warrant; violation of the Maine Unfair Trade Practice Act; violation of the Illinois Consumer Fraud an Deceptive practices act; breach of express and implied warranty; breach of written warranty under the Magnuson-Moss Warranty Act; fraud; breach of the duty of good faith and fair dealing and unjust enrichment.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants failed to disclose a material defect in its Theta 2.0 liter and 2.4 liter gasoline direct injection engines that can result in engine seizure, stalling, engine failure, and engine fire, that engine seizure or stalling can be dangerous if experienced and that some owners and lessees have been improperly denied repairs under the vehicle's warranty.

DEFENDANTS' CONTENTIONS: Defendant denied plaintiff's contentions.

Result

The court preliminary approved the class action settlement. First, pursuant to the settlement agreement, class members were granted a warranty extension which extends the powertrain warranty on Class vehicles to a lifetime warranty. The extension covers short block assembly, consisting of the engine block, crankshaft and bearings, connecting rods and bearings, and pistons. Second, a $140 goodwill payment along with full reimbursement for repairs will be available to class members. Third, additional reimbursement was awarded where class members can collect full reimbursement for rental cars, towing and other expenses related to qualifying repairs. Fourth, for vehicles that were traded in for a lower value as a result of engine seizure, engine stall as requiring repair of the engine block will allow class members to receive compensation and an additional $140 goodwill payment will be available. Fifth, engine fires will result in compensation for the value of the vehicle with an additional $140 goodwill payment. Finally, individuals who purchased a replacement vehicle due to engine failure can recover the following class action rebates: for model year 2011 and 2012 Class Vehicles - $2,000; for model year 2013 and 2014 Class Vehicles - $1,500; for model year 2015 and 2016 Class Vehicles - $1,000; for model year 2017, 2018, and 2019 Class Vehicles - $500. Repairs reimbursement: a $140 goodwill payment along with full reimbursement for repairs will be available to Class Members. Additional reimbursement: Class Members can collect full reimbursement for rental cars, towing and other expenses related to qualifying repairs. Compensation for a reduction in trade in value: Vehicles that were traded in for a lower value as a result of an engine seizure, engine stall, engine noise, engine compartment fire or illumination of the oil lamp diagnosed as requiring repair of the engine block will allow Class Members to receive compensation. An additional $140 goodwill payment may also be available. Compensation for engine fires: Engine fires will result in compensation for the value of the vehicle, with an additional $140 goodwill payment. Rebates: Individuals who purchase a replacement vehicle due to an engine failure or fire can recover the following class action rebates: for model year 2011 and 2012 Class Vehicles - $2,000; for model year 2013 and 2014 Class Vehicles - $1,500; for model year 2015 and 2016 Class Vehicles - $1,000; for model year 2017, 2018, and 2019 Class Vehicles - $500.