9th Circuit lets insurers pursue over $1 billion from Kia and Hyundai

  • 9th Circuit revived insurers’ claims against Kia and Hyundai over stolen vehicles.
  • Insurers seek reimbursement for more than $1 billion in theft-related claims and costs.
  • The case returns to U.S. District Judge James V. Selna’s court in Orange County.

The 9th Circuit Court of Appeals ordered a federal judge in Santa Ana to reopen insurers’ claims seeking more than $1 billion from Kia and Hyundai over stolen and attempted-stolen vehicles. Insurers allege the Korean automakers removed engine immobilizers (anti-theft devices that prevent unauthorized starts) from many U.S.-bound models while retaining them elsewhere, making the vehicles vulnerable to the viral 2022 Kia Boys challenge. The decision follows a $145 million class-action settlement with car buyers and a $9 million settlement involving state attorneys general. A UCLA study led by anthropology professor Jeffrey Brantingham found thefts of the most vulnerable models could remain elevated in Los Angeles through 2042. The appeals court said more than 70% of Hyundai and Kia shipments to the United States passed through California ports, supporting jurisdiction in the state.

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