Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—N.D. Cal.: Settlement in Hyundai Santa Fe stalling defect suit preliminarily approved, (Aug 9, 2016)
Law Firms Mentioned:Glancy Prongay & Murray LLP | Lewis Brisbois Bisgaard & Smith
Organizations Mentioned:Glancy Prongay & Murray, LLP | Hyundai Motor America | Hyundai Motor Co. | Hyundai Motor Company | Lewis Brisbois Bisgaard & Smith, LLP
By Glenn Sulzer, J.D.
A federal trial court in Oakland, California has granted preliminary approval of a settlement resolving a class action suit against Hyundai Motors involving an alleged stalling defect in Hyundai Santa Fe vehicles (Reniger v. Hyundai Motor America, August 8, 2016, Wilken, C.).
Alleged stalling defect. Representatives of a putative class filed a class action lawsuit, alleging that Hyundai Motors committed unfair and deceptive business practices and violated California’s Consumers Legal Remedies Act (CLRA), Unfair Competition Law (UCL), and the Magnuson-Moss Warranty Act by failing to disclose and concealing material information about an unexpected stalling defect in 2010-2012 Hyundai Santa Fe vehicles. After the issues where narrowed and the parties engaged in mediation, a proposed settlement agreement was reached.
Proposed settlement. Under the proposed settlement, approximately 77,331 settlement class members, consisting of all U.S. residents who owned or leased a class vehicle, would be reimbursed for out-of-pocket expenses. In addition, Hyundai would maintain for 10 years a free-of-charge Service Campaign to redress the stalling defect. Finally, new vehicle incentive program would be provided for class members wishing to replace their vehicle notwithstanding the availability of the Service Campaign.
Fair, reasonable, and adequate settlement. The court granted preliminary approval of the agreement, finding it to be "fair, reasonable, and adequate." A fairness hearing was scheduled for February 28, 2017 for a determination of whether the settlement agreement should be finalized; whether the action should be dismissed with prejudice pursuant to the terms of the agreement; and whether class members who do not timely request exclusion should be bound by the release set forth in the agreement.
The case is No. 4:14-cv-03612-CW.
Attorneys: Mark Samuel Greenstone (Glancy Prongay & Murray LLP) for Julia Reniger. Eric Y. Kizirian (Lewis Brisbois Bisgaard & Smith) for Hyundai Motor America and Hyundai Motor Co.
Companies: Hyundai Motor America; Hyundai Motor Company
Cases: StateUnfairTradePractices CaliforniaNews