Unanimous Ninth Circuit Win in “Kia Boyz” Class Action

A Quinn Emanuel appellate team achieved a major Ninth Circuit victory for Hyundai and Kia. In 2023, Hyundai and Kia entered into a consumer class action settlement valued at over $275 million. The settlement released Hyundai and Kia from all consumer liability relating to the “Kia Boyz” thefts that exploited an alleged design defect in Hyundai and Kia vehicles. In exchange, Hyundai and Kia agreed to create a settlement fund to compensate theft victims and to make available a free software upgrade that addresses the alleged defect. Hyundai and Kia did not admit liability.  

Eighty-nine class members objected to the settlement. In 2024, the district court overruled objections and entered final approval of the settlement.  

The settlement’s approval did not go unchallenged. Two class members who had filed objections in the district court appealed the district court’s order and final judgment to the United States Court of Appeals for the Ninth Circuit, seeking reversal of the settlement approval. The objectors argued that the settlement amount was too low given the strength of the consumer class’s case and that class members who had not experienced a theft or theft attempt received inadequate relief. The appellate proceedings presented a critical juncture for defendants, as an adverse ruling would have threatened the entire settlement structure.  

The Quinn Emanuel team delivered a masterful oral argument before the three-judge Ninth Circuit panel, effectively responding to the objector-appellants’ challenges and defending the fairness and reasonableness of the settlement terms. Shortly thereafter, the Ninth Circuit issued two unanimous opinions adopting Quinn Emanuel’s arguments in their entirety and affirming the district court’s final approval of the settlements. Emphasizing that “the very essence of a settlement is compromise,” the Ninth Circuit rejected the objector-appellants’ attempts to judge the settlement “against a hypothetical or speculative measure of what might have been achieved by the negotiators.”  

The unanimous decisions provided conclusive validation of the settlement and secured finality for all parties, allowing Hyundai and Kia to close a significant chapter of litigation and to deliver tangible relief to millions of class members—all while avoiding the uncertainty and expense of a protracted trial.