Press Release: 12/16/2025

AG Campbell Secures $9 Million Multistate Settlement With Hyundai And Kia For Selling Vehicles Without Industry-Standard Anti-Theft Protections

 



Under the Terms of the Agreement, Hyundai and Kia Will Repair All Defective Vehicles For Free



FOR IMMEDIATE RELEASE:



12/16/2025



 



MEDIA CONTACT



Kennedy Sims, Deputy Press Secretary



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Call Kennedy Sims, Deputy Press Secretary at (617) 727-2543



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Email Kennedy Sims, Deputy Press Secretary at Kennedy.Sims@mass.gov



BOSTON — Massachusetts Attorney General Andrea Joy Campbell announced today that she, along with 35 other state attorneys general, has reached a $9 million multistate settlement with Hyundai and Kia for selling millions of defective vehicles nationwide between 2011 and 2022 that lacked engine immobilizers – an industry standard, anti-theft feature that prevents the engine from starting without the presence of the vehicle’s “smart key.” As a result, the design flaw left certain Kia and Hyundai models vulnerable to theft, as was highlighted in a popularized social media trend on TikTok known as the “Kia Challenge,” in which thieves used simple tools to steal cars in under 90 seconds. 



Under the terms of the agreement, Hyundai and Kia have agreed to:  




  • Equip all future vehicles sold in the US with industry-standard engine immobilizer anti-theft technology;

  • Offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles, including vehicles that previously were only eligible for the companies’ software updates;

  • Provide $4.5 million in restitution to eligible customers whose cars were damaged by thieves; and 

  • Pay $4.5 million to the states to defray the costs of the investigation. 



 In Massachusetts, approximately 173,000 vehicles were affected by this design flaw. Under the terms of the agreement, impacted Massachusetts Hyundai and Kia vehicle owners will be fully reimbursed for repairs made to the affected models, and the Commonwealth will receive $114,277.  



“Automakers have a moral and legal obligation to produce cars that at bare minimum meet industry safety standards and are equipped with anti-theft technology to preserve public safety,” said AG Campbell. “I am proud to reach this settlement to hold Hyundai and Kia accountable and encourage all eligible Massachusetts consumers to schedule appointments for free ignition cylinder protectors.”   



Reporting indicates that in 2015, only 26% of the vehicles Kia and Hyundai sold in the United States were equipped with engine immobilizers, compared to 96% of the vehicles sold by other manufacturers. As a result, car thieves devised a quick and simple way to access Kia and Hyundai vehicles’ ignition cylinders and start the cars without a key. States across the country, including Massachusetts, experienced a drastic increase in Hyundai and Kia vehicle thefts. Not only did the number of thefts increase, but many of the vehicles were used in connection with other crimes and were involved in traffic collisions, some fatal.  



Despite Hyundai and Kia selling defective vehicles as early as 2011, the companies waited until 2023 to launch a service campaign to update the software on most of the affected vehicles. Hyundai and Kia also offered to install a zinc-reinforced ignition cylinder protector, but only for the roughly twenty percent of their vehicles that were ineligible for the software update. Although the companies claimed that the software update would prevent further thefts, the states alleged that the software update could be, and in fact was, easily bypassed by thieves. AG Campbell and the coalition pressed Hyundai and Kia to take further action to protect consumers, and as a result of their efforts, Hyundai and Kia will install the required zinc-reinforced ignition cylinder protectors for free for all qualifying vehicles to prevent thieves from accessing the ignition assembly. 



Eligible consumers will be notified by the companies that they will have one year from the date of the notice to make an appointment to have the zinc-reinforced ignition cylinder protector installed at their local Hyundai or Kia authorized dealerships. AG Campbell strongly encourages all impacted Massachusetts consumers to schedule an installation of the zinc-reinforce ignition cylinder protector as soon as possible. 



In addition, consumers who previously installed the software update on their vehicles (or were scheduled to do so) but nonetheless experienced a theft or attempted theft of their vehicle on or after April 29, 2025, are eligible to file a claim for restitution for certain theft and attempted-theft related expenses. For more information about eligibility and how to submit a claim for compensation, please visit the following: 





Joining AG Campbell in reaching this settlement  are the attorneys general of: Arizona, California, Colorado, Connecticut, the District of Columbia, Delaware, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland,  Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, and Wisconsin. 



In Massachusetts, this matter was handled by Assistant Attorney General Eric Carnevale and Managing Attorney Matthew Lashof-Sullivan, both of AG Campbell’s Consumer Protection Division, and Southeastern Massachusetts Deputy Regional Chief Lizabeth Marshall.