Antitrust Law Daily Wrap Up, TOP STORY—N.D. Cal.: Hyundai purchasers reach settlement deal in Santa Fe stalling case, (Jun 24, 2016)

By Edward L. Puzzo, J.D.

After successful settlement negotiations between class representatives and Hyundai Motors over a stalling defect in Hyundai Santa Fe vehicles, class counsel has moved the federal district court in Oakland, California for an order granting preliminary approval of the proposed class action settlement (Reniger v. Hyundai Motor America, June 21, 2016, Wilken, C.).

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 receive a reimbursement program for out-of-pocket expenses; a guarantee by Hyundai to continue to make available free-of-charge for ten years a Service Campaign for the stalling defect; and a new vehicle incentive program for those who wish to replace their vehicle notwithstanding the availability of the Service Campaign. The motion is set to be heard on August 2, 2016.

The case is Civil Action No. 4:14-cv-03612-CW.

Attorneys: Lionel Z. Glancy and Mark S. Greenstone (Glancy Prongay & Murray LLP) for Julia Reniger, Greg Battaglia, Oren Jaffe, Lucia Saitta, and Ann Mancuso.

Companies: Hyundai Motor America; Hyundai Motor Company

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