Hyundai and Kia agree to pay settlement for airbag lawsuit; original 20 claimants to receive $2,500 each.
In a significant development, a class-action lawsuit against Hyundai and Kia over defective airbag control units has resulted in a proposed settlement. The lawsuit consolidates over 20 class-action suits dating back to August 2019.
The settlement covers more than a dozen Hyundai and Kia models, going back to 2010, and impacts millions of current and former owners. The eligible models involve vehicles with a defective airbag control unit supplied by ZF, which may cause airbag non-deployment during collisions.
The settlement offers a 10-year warranty on new airbag control units installed under the recall, limited to failure from electrical overstress. This extended warranty does not apply to vehicles not recalled.
Consumers who qualify for the settlement can recover repair costs and receive additional compensation. For the 20 named plaintiffs, each will receive a payment of $2,500. Other eligible vehicle owners or lessees can be reimbursed for reasonable out-of-pocket expenses incurred to obtain recall repairs related to the defective airbags.
After reimbursements, additional payments up to $350 per recalled vehicle and $150 per unrecalled vehicle may be distributed on a per capita basis. The claim deadline for consumers to submit reimbursement and residual payment claims is March 29, 2027.
The lawsuit stems from alleged defects in airbag control units supplied by ZF-TRW, which could fail during a crash due to electrical overstress. The vehicles initially affected included 2011-2013 Hyundai Sonata and Sonata Hybrid models, as well as 2010-2013 Kia Forte, Forte Koup, Optima, Optima Hybrid, and Sedona.
The settlement now includes 2011-2019 Hyundai Sonata, 2011-2019 Hyundai Sonata Hybrid, 2018-2023 Hyundai Kona, 2022-2023 Hyundai Kona N, 2019-2021 Hyundai Veloster, 2010-2013 Kia Forte and Forte Koup, 2011-2020 Kia Optima, 2011-2016 Kia Optima Hybrid, and 2011-2012, 2014 Kia Sedona.
The overall settlement amounts to $62.1 million, with a large portion allocated to attorney fees. The lawyers representing affected customers will receive over $20.4 million.
If approved, claim forms must be submitted by March 29, 2027. The settlement requires court approval following a fairness hearing scheduled for September 29, 2025. Consumers who believe they are eligible may visit acusettlement.com for information and to submit a claim form.
- The industry-wide implications of this settlement could affect not only the auto industry but also the finance sector, as millions of current and former Hyundai and Kia owners may seek financial assistance to cover repair costs.
- In the finance industry, investments in auto-related businesses might be at risk due to the proposed settlement, given that a significant number of vehicles from Hyundai and Kia are potentially affected by the defective airbag control units.
