A federal appeals court handed the Hyundai Kia theft case back to a California district court this week, reviving a lawsuit that had been thrown out. Around 200 insurance companies want more than $1 billion back from both automakers. The 9th U.S. Circuit Court of Appeals reversed the earlier dismissal on September 14. California courts have jurisdiction. The case is back on.
The Los Angeles Times first reported the reversal. This lawsuit has been years in the making.
The Kia Boyz Started It
In 2021 a group of teenagers posted TikTok videos showing exactly how to steal a Kia or Hyundai. The trick was simple — these cars had no engine immobilizer, so a USB cable in the right place started the engine without a key. They called themselves the Kia Boyz and their videos got millions of views.
The videos went viral fast. Theft rates shot up in Milwaukee, St. Louis, Chicago and Los Angeles within months. Some insurers stopped offering coverage on affected models entirely.
Europe has required immobilizers on every new car since 1998. Hyundai and Kia left them out of millions of US-market vehicles.
What the Insurers Are Arguing
Both automakers eventually pushed out anti-theft software updates. Cities and individual owners sued. Hyundai and Kia settled some of those cases. Around 200 insurance companies filed their own lawsuit in California. Their argument — Hyundai and Kia made a deliberate call to leave immobilizers out of US vehicles, theft followed, insurers paid, now the manufacturers owe them that money back.
U.S. District Judge James V. Selna threw the case out. His reasoning was that a California court had no jurisdiction over foreign manufacturers. The insurers appealed.
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What the 9th Circuit Said
Circuit Judge Eric D. Miller wrote in the ruling that putting vehicles on ships bound for California ports was enough to establish a connection with the state. “By placing the vehicles on ships bound for California ports, the Korean entities purposefully availed themselves of the forum and purposefully aimed their goods at California,” Miller wrote. The case goes back to Judge Selna’s district court.
The ruling doesn’t mean Hyundai or Kia owe anything yet. It means the lawsuit wasn’t dead after all.
Hyundai Kia Theft — Key Numbers
| Detail | |
|---|---|
| Insurers in lawsuit | ~200 |
| Claims sought | Over $1 billion |
| Original dismissal | Judge James V. Selna |
| Reversal | 9th Circuit, September 14 2026 |
| Ruling judge | Circuit Judge Eric D. Miller |
| Case next step | Back to district court |
| UCLA projection | Hyundai Kia theft elevated through 2042 |
This Isn’t Over in 2026
A UCLA study published in a peer-reviewed journal found the spike in Hyundai Kia theft rates in Los Angeles will run through at least 2042. Software updates helped on vehicles that received them. Millions of older affected models never got the fix — parked in driveways, sitting on used car lots, still vulnerable.
The $1 billion figure the insurers are chasing may actually undercount the full picture if the case runs its course and succeeds.
FAQ
Why were Hyundai and Kia models so easy to steal?
No engine immobilizer. A USB cable was enough to start them. Europe has required immobilizers since 1998 — Hyundai and Kia left them out of US-market vehicles.
Who filed this lawsuit?
Around 200 insurance companies seeking to recover over $1 billion in Hyundai Kia theft claims paid out on stolen and damaged vehicles.
What did the 9th Circuit actually decide?
That California courts have jurisdiction to hear the case. The dismissal was reversed. The underlying lawsuit still has to be decided on its merits.
Will Hyundai and Kia pay $1 billion?
Unknown. The case can now proceed — that’s all the ruling determines.
Did the anti-theft software fix the problem?
Partially. Vehicles that received updates are better protected. The UCLA study puts elevated Hyundai Kia theft rates in Los Angeles running through 2042.
Who were the Kia Boyz?
Teenagers who posted videos showing how to steal Kia and Hyundai vehicles with a USB cable. Their videos directly triggered the national theft spike.
