A recent lawsuit has filed a class action against Kia Motors America, Inc. for exaggerating the fuel efficiency of its cars. The suit alleges that the automaker failed to disclose certain facts when marketing their vehicles, and failed to inform customers that their cars’ fuel efficiency was far less than claimed. The alleged violations were identified by the U.S. Environmental Protection Agency (EPA), which determined that inflated mileage claims were a fraud. The ruling came after a joint investigation between the EPA and the automaker. The companies admitted to adjusting their gas mileage estimates but said they would appeal the decision.
The EPA is investigating the matter, but the automaker has made the odometers in unsold cars more accurate.
The settlement involves the company sending prepaid debit cards to car owners, who must visit a dealership each year to get the odometer read properly. This amount will depend on how many owners participate in the lump sum program, but the company has more than $400 million in cash set aside for this purpose.
Hyundai and Kia are settling the class action suit because of the false mileage claims. The U.S. Environmental Protection Agency found flaws in the Hyundai testing process, which led to inaccurate estimates. In addition, the Korean automaker admitted to overstating its MPG ratings. The company is also being sued for unjust enrichment and violations of the California Unfair Competition Law. As a result of these issues, many people can pursue their legal recourse and seek compensation.
If you are a car owner who has experienced incorrect mileage rates, you may be eligible to file a lawsuit in the United States.
If you own a Hyundai or Kia vehicle, you may have a claim against the carmaker. However, the process can be lengthy and costly, and it can be difficult to win a lawsuit in the U.S. courts. For that reason, you may want to consult a legal professional before taking any action.
If you have been affected by the overstated mileage ratings of Hyundai and Kia vehicles, you may be entitled to compensation from the company. If you are one of the owners of a Hyundai, you may qualify for reimbursement through the Kia Mileage Reimbursement Program. For a Kia vehicle, the cost of fuel is reflected in the MPG rating. If you have purchased a Hyundai vehicle, you should not be surprised at the difference.
The EPA’s decision to settle the class action case between the carmaker and a consumer will not affect the company’s comprehensive reimbursement program. The EPA and the Court’s decision will not affect the settlement notice process, but the agreement will result in a lowered fuel economy rating. As a result, the plaintiffs, in this case, will receive partial compensation. The settlement will not change the amount of the settlement but will require Kia to pay a portion of its costs.
The settlement was reached through a class action against Kia and Hyundai Motor America.
The two companies violated the California Unfair Competition Law by overstating their MPG ratings. Since the odometers had to be adjusted, Kia and Hyundai have agreed to compensate owners for the additional fuel costs they have incurred. It’s a win-win situation for the consumers. The EPA will pay damages if the vehicle owner does not receive the right compensation.
Despite the ruling, Kia and Hyundai still face the pressure of a pending class action. The court said the automakers were not guilty of collusion with drivers’ lawyers, and that the settlement reflects the results of independent testing. The lawsuits, which were filed in 2011, are based on the false claims made by consumers and have the potential to cause millions of dollars in damages. In both cases, the courts have ruled against the carmakers.
The attorneys for the plaintiffs have settled a multistate MPG lawsuit involving Kia and Hyundai.
The settlement includes a total of $41.2 million in damages. It will cover fuel costs incurred because of the inflated mileage. As a result of this settlement, Kia has also offered to reimburse affected owners. It also has agreed to compensate those who have already paid a significant amount of money. The company says it will not make further adjustments to the mileage of its vehicles.