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A federal appeals court has revived a major Hyundai Kia theft lawsuit, allowing about 200 insurance companies to pursue more than $1 billion in claimed losses tied to thefts and attempted thefts.

The Hyundai Kia theft lawsuit has entered a new phase after the U.S. Court of Appeals for the Ninth Circuit overturned a lower-court dismissal involving roughly 200 insurance companies. The insurers are seeking reimbursement for payments and related expenses connected to stolen or damaged Hyundai and Kia vehicles from certain model years.

The case centers on vehicles from 2011 through 2022 that, according to the insurers’ allegations, were vulnerable because they did not have engine immobilizers. These devices are designed to prevent a vehicle from starting without a properly authorized key. The Ninth Circuit’s September 14, 2026 opinion specifically addressed whether Hyundai Motor Company and Kia Corporation could be subject to personal jurisdiction in California.

Why Hyundai and Kia Vehicles Became Theft Targets

The controversy grew after videos showing how certain Hyundai and Kia models could be stolen spread widely online. The Ninth Circuit’s opinion says the affected vehicles lacked engine immobilizers and describes how thieves demonstrated methods for bypassing the ignition system. As those techniques spread, thefts of the targeted models increased across the United States.

Hyundai has previously acknowledged that millions of its vehicles were affected and introduced a free software upgrade for eligible models. The automaker says the program applies to nearly four million Hyundai vehicles, while vehicles that cannot receive the upgrade can qualify for a steering-wheel lock. Hyundai also states that engine immobilizers became standard across its lineup beginning with vehicles produced in November 2021.

The 2022 Kia Forte was among the model years included in the broader group of vehicles affected by the theft issue.

Insurers Get Another Chance in California

The insurance companies’ case was initially dismissed by U.S. District Judge James V. Selna, who concluded that the California federal court lacked personal jurisdiction over Hyundai Motor Company and Kia Corporation, the Korean parent companies. The insurers appealed that ruling to the Ninth Circuit.

The appeals court reached a different conclusion at the pleading stage. Its judges found that the complaint plausibly alleged sufficient contacts between the Korean manufacturers and California, including the shipment of thousands of vehicles through California ports. The court also pointed to allegations that the vehicles had been designed for the U.S. market without engine immobilizers.

This distinction is important. The appeals court did not rule that Hyundai and Kia are liable for the insurers’ claimed losses. Instead, it reversed the jurisdictional dismissal and sent the case back to the district court for further proceedings. The district court must still address whether exercising jurisdiction would be reasonable.

The 2022 Kia Soul is another model from a model-year range covered by the broader Hyundai-Kia theft litigation.

More Than $1 Billion Is at Stake

The insurers say they have already paid more than $1 billion in claims and costs associated with thefts and attempted thefts involving vulnerable vehicles. Their goal is to recover those amounts, along with related expenses, from the automakers. The Ninth Circuit decision allows those claims to continue through the litigation process.

The underlying dispute also involves allegations about how anti-theft equipment was offered in the U.S. market. According to the insurers’ complaint, standard versions of certain Hyundai and Kia models sold in the United States were produced without immobilizers while the technology was available in other markets or higher trim levels. Those assertions remain allegations in the litigation rather than findings of liability by the court.

The companies have already taken several measures to address the theft problem. Hyundai and Kia previously introduced security software upgrades and other anti-theft measures for eligible vehicles, while a multistate settlement provides additional protection and compensation for qualifying owners.

The 2022 Kia Sportage was also included among the Hyundai and Kia vehicles covered by the theft-related litigation and security measures.

The Theft Problem Could Continue for Years

The legal battle is unfolding as researchers examine how long the theft trend may persist. A UCLA-led study published in the International Journal of Forecasting modeled the long-term effects of the vulnerability and concluded that its impact on vehicle theft could persist for decades. UCLA says the researchers expect elevated thefts in Los Angeles to continue through at least 2042.

Interestingly, the UCLA research also found that the rise in thefts in Los Angeles began before the 2022 peak in social-media attention surrounding the so-called Kia Boys trend. The study concluded that social media amplified the phenomenon, but that other factors, including the vehicles’ security vulnerability and the disruption associated with the COVID-19 pandemic, also played important roles.

The Hyundai Kia theft lawsuit will now return to the California federal court, where the insurers can continue pursuing their claims. The latest ruling therefore does not settle the dispute, but it removes the jurisdictional barrier that had stopped this particular group of claims from moving forward.