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Hyundai, Kia Settle Claims Over Inflated Fuel-Economy Data

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Dec. 27, 2013—Hyundai Motor Co. and Kia Motors Corp. announced Monday that they have reached a settlement on a class-action lawsuit pertaining to inflated fuel-economy data for much of its 2010-2012 fleet of vehicles.

The suit was filed on behalf of customers alleging that the companies did not present honest gas-mileage data with a number of their vehicles.

Hyundai will pay out $210 million, though the figure could fluctuate depending on how customers affected take their payment, such as a lump sum or a lifetime reimbursement program based on restated mileage numbers from November 2012. Kia is expected to pay out roughly $185 million.

The average lump sum paid to each plaintiff for Kia would be $667, with Hyundai’s at $353.

Both South Korean companies admitted to inflating fuel-mileage data for an estimated 900,000 vehicles sold in the U.S. for 2011-2013 model years. Average fuel-economy ratings fell about one mile per gallon on average when the numbers were restated.

According to a Wall Street Journal report, a court is expected to rule on the settlements in early 2014.   

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