Va. Subclass Sought in Hyundai, Kia Fuel Economy Class Action Lawsuit

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Dissension between plaintiffs from different states has led to a motion to certify a Virginia sub-class even as a Hyundai and Kia fuel economy class action settlement is pending approval before a federal judge.

The class action settlement would resolve litigation alleging that the Korean auto makers reportedly over-estimated the fuel mileage that many of their vehicles would get. Class action attorneys for the parties that settled had done so based on allegations revolving around California consumer protection statutes. However, other plaintiffs would see significant negotiating benefits if they were able to cite Virginia statutes, according to a notice of objection to the class action settlement.

If the sub-class of commonwealth residents were certified, as was the nationwide class, the dissenters argue that by way of the state’s Consumer Protection Act and the Motor Vehicle Warranty Enforcement Act, the class action settlement currently only represents one-fifteenth or less “of the potential value of the Virginia claims,” which “has the potential to be trebled if the Virginia plaintiffs prove willfulness. Thus the … estimation was, if anything, an estimate favorable to the proposed settlement.”

The objection goes on to support the request for a sub-class by noting that most consumer class action lawsuits are governed by state laws and that it would be unreasonable for residents of Virginia to have their claims governed by the statutes of another state. Further, “if the Virginia sub-class is created the rest of the nationwide settlement can be completed thereby making substantial progress in this litigation.”

Finally, the objection makes the allegation that companies like Hyundai and Kia who are looking to resolve litigation such as the current fuel economy class action lawsuit may choose to settle with the plaintiffs’ lawyers who seem most amenable to resolution. Since the class action lawsuits are actually combined into multidistrict litigation, this may not be in the best interests of all plaintiffs.

The settlement for the class action lawsuits as it currently stands would provide between $150 and $590 for current owners and lessees of Hyundais named in the lawsuits and $50 and $1,420 for Kias, with an additional award for current owners and lessees of Hyundai Accents, Elantras, Sonata Hybrids and Velosters.

Class Members are represented by class action attorneys Elaine T. Byszewski, Robert B. Carey and Steve W. Berman of Hagens Berman Sobol Shapiro LLP and Richard D. McCune of McCune Wright LLP, among others. The objectors are represented by Harvey Rosenfield, Pamela Pressley and Laura Antonini of Consumer Watchdog.

The Hyundai, Kia Fuel Economy Class Action Lawsuit is In Re: Hyundai and Kia Fuel Economy Litigation, Case No. 13-ml-02424, in the U.S. District Court for the Central District of California.

UPDATE: A settlement has been reached in a class action lawsuit alleging Hyundai Motor America and Hyundai Motor Company misrepresented the fuel economy of certain Hyundai vehicles. Consumers who purchased or leased certain Hyundai vehicles could be eligible for a cash payment or other benefits. Learn more at the Hyundai Fuel Economy Settlement.

UPDATE 2: As of Apr. 11, 2016, six different appeals have been filed concerning the Hyundai Fuel Economy Settlement. Until the Court resolves those appeals, the Claims Administrator is unable to mail out settlement funds.