Kia and Hyundai Face $1 Billion Insurer Lawsuit After 9th Circuit Ruling

Regulation
โดย Los Angeles Times·USKR·Read original
Summary · why it matters

A federal appeals court has revived a lawsuit in which some 200 U.S. car insurance companies are seeking more than $1 billion in reimbursement from Kia and Hyundai over thefts of their easy-to-steal vehicles. The 9th Circuit Court of Appeals ruled Monday that the insurers can sue the Korean automakers, reversing U.S. District Judge James V. Selna, who had dismissed the complaint after finding his Santa Ana court lacked jurisdiction over the foreign manufacturers. The appellate panel found the companies intentionally reserved engine immobilizers as an upsell for American buyers, and that because more than 70% of all Hyundai and Kia shipments to the U.S. passed through California ports, the vast majority of vehicles built without working immobilizers were targeted to the state. The ruling is the latest legal blow to the automakers, which have already settled a $145-million class-action suit with car buyers and a $9-million case brought by state attorneys general. The case now returns to Selna's court in Orange County, as a new UCLA study projects elevated thefts of the vulnerable models in Los Angeles through 2042.

Impact on stocks 3

Electrification & Mobility▼ · 2 stocks
Kia Corp
000270
▼ NegativeRegulationrelevance

9th Circuit revived insurers' $1B+ lawsuit against Kia over theft-prone vehicles lacking immobilizers.

Hyundai Motor Co. Ltd.
005380
▼ NegativeRegulationrelevance

9th Circuit revived insurers' $1B+ lawsuit against Hyundai over theft-prone vehicles lacking immobilizers.

Others▼ · 1 stocks
Hyundai Motor Co
005380
▼ NegativeRegulationrelevance

9th Circuit revived insurers' $1B+ lawsuit against Hyundai over theft-prone vehicles lacking immobilizers.

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