Hyundai/Kia Gamma II 1.6L and Nu 2.0L GDI Engine and Theta II 2.4L MPI Engine Class Action

Update: October 22, 2026

We are pleased to announce that a proposed nationwide Settlement has been reached in this class action (McCloskey and Kapron v Kia Canada Inc et al, bearing Ontario Superior Court of Justice File No. CV 22-00675588-00CP) as well as two related proposed class actions commenced elsewhere in Canada:

• Killoran v Hyundai Auto Canada Corp et al, bearing Supreme Court of British Columbia File No. S-213324; and
• Roy v Hyundai Auto Canada Corp et al, bearing Superior Court of Québec File No. 500-06-001136-213 (together, the “Actions”).

The lawsuits allege that the Settlement Class Vehicles (listed in the table below) were manufactured, marketed, sold, and leased with an engine defect that can result in sudden engine seizure, engine failure, and/or engine fire. The Defendants deny those allegations, and the Court did not decide who was right. The Parties have instead decided to settle the lawsuits.

Settlement Class Vehicles

The Settlement Class Vehicles are as follows:

Proposed Settlement Benefits

If the proposed Settlement is approved by the Court, Settlement Class Members may be eligible for the following settlement benefits:

• extended warranty coverage for repairs resulting from damage to the short block assembly and/or long block assembly if caused by a connecting rod bearing failure, upon installation of the Knock Sensor Detection System;
• cash payment for qualifying past out-of-pocket repairs and repair-related expenses;
• dealer credit for inconvenience due to past repair-related delays;
• cash payment for incidentals related to certain engine failures or fires;
• cash payment for certain sales or trade-ins of unrepaired vehicles;
• cash payment for vehicles lost due to certain engine fires; and/or
• in some instances, a cash rebate if you lost faith in the Settlement Class Vehicle after receiving this Notice and you traded it in for another Hyundai- or Kia-brand vehicle (as applicable).

“Settlement Class Members” are all persons, including individuals and entities, who purchased or leased a Settlement Class Vehicle in Canada, with the exception of Excluded Persons.

“Excluded Persons” means:

• the Defendants and their directors and officers;
• persons who validly opt out of the Settlement;
• persons who purchased a Settlement Class Vehicle that had previously been deemed a total loss or that had a branded title of “Dismantled,” “Junk,” “Salvage,” or “Mechanically Unfit” (subject to verification through Carfax or other means);
• current or former owners or lessees of a Settlement Class Vehicle who previously released their claims in an individual settlement with any of the Defendants with respect to the issues raised in the Actions; and
• Class Counsel and presiding judges in the Actions.

Settlement Approval Hearing

Before the Settlement can be implemented, it has to be approved by the Ontario Superior Court of Justice. The Court will decide whether or not to approve the Settlement on Tuesday, February 2, 2027 at 10:00 am EST virtually over Zoom.

When available, a Zoom link for virtual attendance at the Settlement Approval Hearing will be posted on the settlement websites (www.hyundaicanada-E2settlement.ca and www.kiacanada-E2settlement.ca).

The legal fees to Class Counsel may also be approved at the Settlement Approval Hearing, but that amount will be paid separately and will not reduce the settlement benefits to Settlement Class Members.

Check the settlement website applicable to your Settlement Class Vehicle (www.hyundaicanada-E2settlement.ca or www.kiacanada-E2settlement.ca) regularly after the Settlement Approval Hearing to see if the Settlement has been approved. You can also provide your email address to the Administrator or Class Counsel to be notified by email if the Settlement is approved.

Note: At this time, there are no settlement benefits available for Settlement Class Members. The claims process has not yet begun. If the proposed Settlement is approved, Settlement Class Members may make a Claim for settlement benefits under the Settlement.

Your Legal Rights and Options

• If you want to participate and make a Claim in the Settlement if it is approved, you are not required to do anything until after the Settlement is approved. If the Court approves the Settlement and you are eligible, you will be able to submit a Claim for settlement benefits. Check the settlement website applicable to your Settlement Class Vehicle (www.hyundaicanada-E2settlement.ca or www.kiacanada-E2settlement.ca) regularly after the Settlement Approval Hearing to see if the Settlement has been approved. A further notice will be published there if the Settlement is approved, letting you know how to make a Claim and the deadline for doing so. You can also provide your email address to the Administrator or Class Counsel to be notified by email if the Settlement is approved.
• If you don’t agree with the proposed Settlement or any part of it, you can object to the proposed Settlement (i.e., give the Court reasons why you think the Court should not approve it) and attend the Settlement Approval Hearing to present that objection. If you wish to object, you are asked to submit a signed written objection statement to the Administrator on or before January 20, 2027.
• If you do not want to receive any benefits from the Settlement, and you want to keep your legal rights, if any, to sue the Defendants, or any of them, on your own about the legal issues in this case, you must take steps to exclude yourself from (opt out of) the Settlement Class. If you wish to exclude yourself from the Settlement Class and keep your legal rights, if any, to sue the Defendants, you must submit a signed and completed Opt-Out Form to the Administrator on or before January 20, 2027. A copy of the Opt-Out Form is available below, from the settlement website applicable to your Settlement Class Vehicle (www.hyundaicanada-E2settlement.ca or www.kiacanada-E2settlement.ca), or by reaching out to the Administrator at the Administrator’s contact information below.

Your legal rights and options – and the deadlines to exercise them – are explained in more detail in the long-form Pre-Approval Notice (available below), and on the settlement websites (www.hyundaicanada-E2settlement.ca and www.kiacanada-E2settlement.ca). Please read the long-form Pre-Approval Notice carefully.

For clarity, if you are a Settlement Class Member and you wish to make a Claim, you are not required to do anything until after the Settlement is approved. The claims process has not yet begun. If the Settlement is approved, Settlement Class Members will have 90 days to make a Claim by submitting a Claim Form, from the Effective Date (the date the Court order approving the Settlement has been issued and entered, if there are no appeals).

How Do I Get More Information?

If you would like to review all of the details in the Settlement Agreement, you can view the Settlement Agreement below or request a copy of it from the Administrator at the Administrator’s contact information below.

If you have any questions regarding the proposed Settlement or about the class action lawsuits in general, you can reach out to the Administrator at the following contact information:

Hyundai/Kia Engines II Class Action Settlement Administrator
c/o Verita Global, LLC
PO Box 3355
London, ON  N6A 4K3
Toll-Free Telephone: 1-888-808-2457 (for Hyundai vehicles) or 1-888-808-2443 (for Kia vehicles)
Email: support@hyundaicanada-E2settlement.ca (for Hyundai vehicles) or support@kiacanada-E2settlement.ca (for Kia vehicles)
Website: www.hyundaicanada-E2settlement.ca (for Hyundai vehicles) or www.kiacanada-E2settlement.ca (for Kia vehicles)

You may also contact Class Counsel:

Documents Related to this Update:

• View a copy of the short-form Pre-Approval Notice (Hyundai) here (English /French).
• View a copy of the short-form Pre-Approval Notice (Kia) here (English /French).
• View a copy of the long-form Pre-Approval Notice (Hyundai) here (English/French).
• View a copy of the long-form Pre-Approval Notice (Kia) here (English/French).
• View a copy of the Settlement Agreement here (English/French).
• View a copy of the Opt-Out Form here (English /French ).
• View a copy of the Pre-Approval Order here .

Other Documents:

• Fresh as Amended Statement of Claim, filed May 23, 2023
• Consolidation Order, dated April 18, 2023