The plaintiffs in two class actions against Hyundai and Kia sought court approval for a proposed settlement agreement concerning allegedly defective Theta II 2.0-litre and 2.4-litre gasoline direct injection engines in certain vehicles.
The settlement provides for an extended lifetime powertrain warranty, reimbursement for past qualifying repairs and related expenses, compensation for vehicles sold at a loss or lost to engine fire, and a trade-in rebate program.
The court reviewed the settlement against the principles for class action settlement approval, including arm's-length bargaining, the amount of investigation, the zone of reasonableness, and the recommendations of counsel and representative plaintiffs.
Despite objections from a small percentage of class members, the court found the settlement to be fair, reasonable, and in the best interests of the class, approving it as it falls within the zone of reasonable outcomes given the litigation risks and benefits.