Pelayo, et al., v. Hyundai Motor America, Inc., Hyundai Motor Company, Kia Motors America, Inc., and Kia Motors Corporation

Berger Montague, with its co-counsel, asserted claims against the Hyundai and Kia Defendants on behalf of consumers who purchased or leased Hyundai or Kia brand vehicles with a “Gamma” 1.6L GDI engine (“Class Vehicles”) for violations of the express and implied warranty statutory provisions, the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301, et seq., and certain state consumer fraud statutes. The complaint alleged each of the Class Vehicles and their Gamma engines suffer from latent workmanship and/or manufacturing defects.  

As a result of these defects, the Gamma engines are prone to sudden stalling, excessive oil consumption, and premature engine failure, as well as catastrophic and fast-moving fires while the vehicles are being driven which destroy the vehicles, their contents and can harm the passengers therein (the “Defect”).  As a result of the Defect, many owners and/or lessees of Class Vehicles have lost their vehicles to sudden fires, or premature engine failure.  

Often, even when these vehicles are capable of being repaired, the cost is astronomical involving the purchase of a new engine for $8,000 or more.  However, many times the vehicle is totally destroyed as a result of the fire or engine stall and/or failure.  

The Hyundai and Kia Defendants concealed the Defect from consumers.  A confidential settlement was reached in this matter.  Russell Paul, Amey Park and Abigail Gertner were responsible for this matter.

If you have purchased or leased a vehicle and experienced a defect that impacted the safety of the vehicle and has resulted in economic losses, please contact Berger Montague.  Our award-winning lawyers are available to speak with you free of charge.

About Berger Montague

Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented.

Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.