A few months ago, when the phenomenon of Hyundai/Kia-specific thefts began to skyrocket, I predicted that there would be Class Action suits to compensate owners of the vehicles that were saddled with the omission of a now-normal anti-theft device. One or two naysayers in this forum doubted that this would happen, but… one CA suit has already been settled by Hyundai/Kia, to the tune of $200 million.
In the end, between damage to their reputation and also payouts to owners of the affected cars, this will wind-up costing those companies a LOT more than their small savings when they chose to omit anti-theft protection on their cheaper models.
The companies say the settlement could be valued at $200 million and covers about 9 million
If everyone makes a claim that works out to what, $22 per owner? That doesn’t take into account the lawyers skimming their fees off the top. About right for these class action deals…
I agree, they need some accountability for the situation. But as usual, the people getting compensated are often not the ones that got harmed in the first place.
Hey, where’s the aftermarket when you need them? Should be a gadget advertised in the back of Popular Mechanics by now…
Yes, but history shows that–for some reason or other–most people who are qualified for a settlement never actually file a claim. The result is that those who do file a claim wind-up with more than they would have gotten if everyone had filed.
While the payouts from Class Action suits tend to be small, there are exceptions. Quite a few years ago, I filed a claim in a CA suit related to price-fixing on Cathode Ray monitors. I had no idea how much I would collect for the 3 monitors that I listed, but I was astonished when (a couple of years later) I got a check for close to $400.
True. I made out pretty good on that diamond price fixing (big surprise there, not!) settlement. Several thousand. I was very surprised to see that. But the vast majority they end up not being worth the time and effort to cash the check…
They just can’t win. Even here we regularly see posters who clamor for simple basic cars without all these unnecessary features and electronics that seem to baffle the ‘nuts and bolts’ crowd. And people complain when these cheap, bottom-of-the-line cars don’t have all the features of upper level cars. Why aren’t the customers sharing some of the blame here for not buying better cars?
We have made a wrong turn somewhere if when a thief steals a car we blame the car.
I don’t necessarily disagree with you. I’m all for personal responsibility and freedoms from nanny state laws and regulations. Alarms and anti-theft protections have become pretty much ubiquitous in cars. Maybe if they had disclaimers of some sort- hey, along with this cheap, I mean inexpensive, car we left out a few things you might have come to expect…
They had to do something. Their business was in jeopardy from insurance company refusal to insure these models.
Class action lawsuits are mainly for PUNISHMENT and not victim compensation. In many cases class action lawsuits resulted in businesses changing their business practices so they don’t get sued again. I personally think that’s a good idea.
In many instances, a class action lawsuit has resulted in a business discontinuing selling a harmful product or providing a defective or harmful service. If an individual is seeking compensation, they can always elect to not be a part of the class action and instead reach their own settlement with the defendant.
I rented a car in Texas about 1973. I think it was a gremlin or something. I was baffled by not being able to get the key out until I discovered a button to push first. Then thinking about our 58 Chevy where you could pull the key out while it was running and even start it again without the key. No body stole it. Time marches on.
In the late 1990’s Laptop computers manufacturers with TFT monitors paid out a class of $25 a laptop, I think I collected $75. Toro lost a class action about over rating the engines horsepower, I think I received $50 and a year or two of extended warranty.
But I am a member of the class action lawsuit against Starkist Tuna for selling “under-weight” cans… The original projected award was $25 cash or $50 worth of tuna coupons. So many people joined in that the settlement, after lawyer’s fees and expenses, the award is projected to be reduced to just pennies… I am so disappointed, I like my tuna…
Sounds a bit like Ford’s decision concerning the Cost/Benefits decision on the Pinto… Ford knew the Pinto was a fire trap before it went into full production. But their “bean counters” projected that the cost to fix the Pinto was greater that all the Law Suits that would be generated by the injuries and deaths for the exploding gas tanks and decided to not fix the Pinto and risk the law suits…
But honestly, this is only the most superficial comparison as the Kias and Hyundais would only possible get stolen, not permanent disable and kill people…
I hate tuna but I’d like to find the guy that complained about those push button tooth paste dispensers. Claimed he got shorted because he couldn’t get all the tooth paste off. So now back to squeezing the tube. My dad had a pinto wagon and just put a hitch on it. Onto lithium batteries and fires though. That’s where the real money will be made.
We just got a check from a CA lawsuit we were involved in and got a Huge $29 and change… We are going to cash it and splurge at McDonalds soon…
I know there are exceptions to every rule, but for the most part the only winners are the lawyers…
At least it does add some accountability to the business in the wrong…
Yeah we’ll be careful what you order. Before Covid breakfast would cost me about $8. Now the same is more like $13. And that is drive through without coffee. But it’s fir the kids who are making $16 an hour now. Puts my $1.25 after promotion to hamburger flipper to shame.
I remember being able to do that with the old 65 Malibu I had.
I find the whole lawsuit thing silly, but it is the world we live in today. Blame the owners, blame the company that made the vehicles, blame everyone except the criminals that are doing this.
