#HotLegalAction

Hyundai Motor Group might quite literally end up paying for having failed to equip engine immobilizers to some of its older models. You’ll undoubtedly recall the TikTok Kia Boyz Challenge, where “at-risk youths” utilized USB connectors on torn open ignition slots to hotwire Hyundai and Kia models. Originating in the summer of 2021, the trend was in the mainstream media the following year and caused serious publicity issues for the manufacturer.

Numerous U.S. insurance agencies have reportedly joined forces to sue the automaker for damages they claim could reach up to $600 million.

Russia’s Gorky Automobile Plant (Gorkovsky Avtomobilny Zavod or GAZ) is suing Volkswagen Group over vehicles it was contracted to assemble but never had the opportunity to after the German automaker pulled out of the market at the start of the Russo-Ukrainian War.

Reports have emerged in Germany that former Audi CEO Rupert Stadler is about to become the upper-echelon automotive executive convicted in the diesel emissions fiasco perpetrated by Volkswagen Group. A Munich court issued a preliminary assessment on Tuesday, stating that an accusation of fraud had been substantiated.

Hertz has decided to pay $168 million to settle 364 individual claims that the company falsely reported its own rental cars as stolen. Criticisms date back to 2015 but the issue became national news right around the time the company was also filing for Chapter 11 bankruptcy in 2020. Hertz has since maintained that any erroneous claims made against customers were the result of a faulty inventory system that’s since been fixed. However, the people that were wrongfully accused of the crime – some of which were held at gunpoint by police and even temporarily imprisoned for a felony offense they didn’t commit – have been seeking restitution in class-action suits.

Goodyear has agreed to recall more than 173,000 intended for commercial delivery vehicles and RVs nearly two decades after the last one was manufactured. The company’s G159 tires have been under investigation by the National Highway Traffic Safety Administration (NHTSA) since December of 2017 and the recall comes in the wake of years of lawsuits alleging the rubber contributed to a series of fatal accidents dating back to 1998.

Despite no new claims having launched in years, court orders and settlement agreements delayed an order to make corporate data pertaining to the tire-buying public for five full years. The NHTSA didn’t even launch a formal investigation until late in 2017, followed by the recent announcement that the agency has pushed Goodyear into a recall for a tire that ended production during the Bush administration.

Last week, a group of Republican attorneys general decided to sue the Environmental Protection Agency (EPA) over its decision to reinstate the waiver allowing California to set its own limitations on exhaust gasses and zero-emission vehicle mandates that would exceed federal standards.

The agency approved the waiver after it had been eliminated as part of the Trump administration’s fuel rollback on the grounds that it would create a schism within the industry by forcing automakers to produce vehicles that catered to the Californian market at the expense of products that might be appreciated in other parts of the country. However, Joe Biden’s EPA sees things differently and has aligned itself with the California Air Resources Board (CARB) in giving the state more leeway to govern itself in regard to emissions policing.

The State of California is considering leveraging enhanced surveillance to increase the number of motorists it can fine for noise violations. While the rules allowing the state to penalize motorists for emitting too much sound have existed for years, they were amped up slightly in 2019 when Assembly Bill 1824 went into effect and established the limits for what’s allowed today. The updated rules also required police to immediately fine anyone driving an automobile that’s emitting noise measured above 95 decibels, rather than issue a fix-it ticket. Motorcycles, which can occasionally exceed 95 dB in their stock format if they’re older, are limited to just 80 dB.

But determining when and where someone broke the rule is difficult, especially considering measurements were originally supposed to be taken under the Society of Automotive Engineers (SAE) test procedure J1169, so the coastal region is on the cusp of launching a new program that would introduce microphone-equipped traffic cameras similar to what we’ve already seen in New York and the United Kingdom. California leadership believes that an automated system would result in greater levels of enforcement by effectively mimicking the speed camera formula and applying it to vehicular noise violations.

On Thursday, The UAW and a group of environmental groups based in the United States filed numerous lawsuits in an effort to block the U.S. Postal Service (USPS) from moving forward with plants to purchase gasoline-powered next-gen delivery vehicles (NGDVs) from Oshkosh Defense. The suits are being launched on the grounds that the USPS failed to comply with environmental regulations and went back on an earlier promise to field all-electric variants.

They’re supported by the White House ⁠— which launched an initiative to convert the entire federal fleet into battery electric vehicles last year ⁠— and congressional Democrats that were angered after the Postal Service went against the Biden administration’s request to prioritize EVs. The president and the Environmental Protection Agency (EPA) even went so far as to request that the USPS to hold off on the $11.3 billion contract with Oshkosh so electric options can be reevaluated. However, Postmaster General Louis DeJoy has repeatedly stated that it’s not realistic to field a significant number of electric vehicles and that the mail service would need additional funding from the government to consider such a move.

Now that the U.S. Environmental Protection Agency (EPA) looks poised to reinstate California’s waiver under the Clean Air Act — allowing the state to establish stricter tailpipe emissions than the federal limits — the coastal region has resumed its quest to abolish gasoline-powered vehicles in earnest. While the California Air Resources Board (CARB) has yet to finalize all the details, the latest proposal calls for strengthened emissions standards for new light-duty vehicles in anticipation of the necessary approvals.

The scheme would require pure electrics and plug-in hybrids (PHEVs) to make up 35 percent of new-vehicle sales for the 2026 model year. By 2030, that number will become 68 percent before hitting 100 percent for MY 2035. CARB said zero-emission vehicles comprised 12.4 percent of the state’s new market in 2021, hinting that the number could have been higher without the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule Part One having stifled its progress.

Several executives from perpetual automotive startup Faraday Future have reportedly been subpoenaed by the U.S. Securities and Exchange Commission as part of an investigation into inaccurate statements made to investors. Though, considering the nameplate’s history, it would be impossible to assume which item the SEC will be focusing on thanks to FF’s exceptionally long history of industrial misgivings.

We’ve covered Faraday Future’s long and bizarre story from the early days of delivering half-baked, though otherwise impressive, concepts to its more recent status as an automaker in the ethereal sense. It’s promised the moon and only managed to deliver a handful of production husks that never surpassed the body-in-white phase and some “production-intent” prototypes of the FF91. Though the larger story is the SEC’s sudden interest in electric vehicle startups that went public via mergers with blank check firms, better known as special purpose acquisition companies (SPACs), over the last two years.

The Securities and Exchange Commission (SEC) is reportedly investigating whether stock sales by Tesla CEO Elon Musk and his brother, Kimbal Musk, violated insider-trading rules.

Launched in 2021, the probe is looking into shares sold by Kimbal valued at $108 million one day before Elon polled Twitter to see whether or not he should offload 10 percent of his stake in the company, suggesting he would run with the results. Though the tweet itself was a snide way of discussing proposals from Democrat legislators that would have imposed new taxes on unrealized capital gains, effectively money that doesn’t yet (and may never) exist.

New Yorkers with aftermarket exhaust systems may want to be extra careful because a law, signed by Governor Kathy Hochul to increase fines on sound violations, now has a new enforcement tool designed to spot noisemakers.

Approved in autumn of 2021, the SLEEP (Stop Loud and Excessive Exhaust Pollution) Act raised the fine on vehicles producing excess sound in NY from $150 to a whopping $1,000. But drivers are now learning that getting busted won’t necessarily require whizzing past a squad car while their Borla snap-crackle-and-pops surrounding eardrums. NYC residents have begun receiving notices in the mail after being caught by the auditory equivalent of speed cameras.

Hertz customers have issued complaints that the company falsely accused them of stealing rental cars. Numerous renters have made claims that they were stopped by police to be informed that the vehicle they had paid to borrow was reported stolen. Complaints became so prevalent that CBS News launched an investigative report last November to uncover whether individuals were simply lying about their innocence to avoid prosecution or if Hertz was habitually screwing things up.

By December, 191 claims had been filed in federal bankruptcy court on behalf of the people who said they were falsely arrested. But it took another two months for a Delaware bankruptcy court judge to issue a ruling that will require Hertz to make the number of renters it accuses of stealing its cars every year publicly available.

Nikola Corp. has agreed to pay $125 million to settle charges levied by The Securities and Exchange Commission (SEC) that the company actively defrauded investors by providing misleading information about its technical prowess, production capabilities, and general prospects.

The settlement comes after a salvo of civil and criminal charges were launched against Nikola’s founder Trevor Milton, who got in trouble for convincing investors that the prospective automaker had fully functional prototypes boasting technologies other companies would have envied when that wasn’t actually the case. Milton was chided for using social media to promote false claims about the business, with his pleading not guilty to fraud charges brought up by the Department of Justice in July.

Nikola Corp. founder, Trevor Milton, has been offloading stock ever since he was indicted for making misleading and/or blatantly false statements about the company. The formal charges were issued in July, piggybacking off a critically damning report from 2020 that alleged Nikola had grotesquely misrepresented its production capabilities and falsified a video where it showed an inoperable prototype vehicle working as if it was fully functional. The paper caught the attention of both the Securities and Exchange Commission (SEC) as well as the Department of Justice (DOJ) — resulting in Milton stepping down as CEO and twelve months of investigative probes.