Facts

Several individuals, including Leslie Flaherty, filed suit against Hyundai Motor Company and others in USDC Central on December 14, 2018. Other lawsuits were similarly filed and the cases were consolidated as In re: Hyundai and Kia Engine Litigation II. This particular case arose from an earlier case concerning vehicles equipped with certain engines containing a similar alleged defect. While litigating the first case, plaintiffs' counsel received reports regarding engine problems which led to this action.

PLAINTIFFS' CONTENTIONS: Plaintiff contended that certain of defendants' vehicles were equipped with faulty anti-lock brake modules that could spark fires; specifically, an engine defect potentially resulting in sudden engine seizure, engine failure and/or engine fire.

DEFENDANTS' CONTENTIONS: Defendants denied plaintiffs' allegations, denying all liability and culpability.

Settlement Discussions

The parties attended mediation with retired judge, Hon. Edward Infante on February 22, 2022 which led to an agreement on the incentive awards. Agreement as to the attorneys' fees and expenses were later addressed.

Result

The case settled, providing for, among others, warranty extension along with full reimbursement for qualifying repairs, towing, or other out-of-pocket expenses related to that repair. Class members whose vehicles were destroyed by a qualifying fire were entitled to the vehicle's black book value minus certain expenses. Rebates were also available for certain models. The settlement was valued at about $326 million.