Hyundai Sold Thousands of SUVs With Defective Brakes, Lawsuit Claims
Class action alleges Hyundai Motor America knowingly sold 2023-2025 Palisade SUVs with dangerous braking defects that cause vehicles to lurch forward and fail to stop on uneven roads, then refused to repair them under warranty.
Hyundai Motor America faces allegations it knowingly sold thousands of 2023-2025 Palisade SUVs with defective anti-lock braking and traction control systems that cause dangerous brake failures on uneven roads. Despite widespread consumer complaints since 2022 describing terrifying near-collisions and vehicles that won’t stop properly, Hyundai allegedly concealed the defect, marketed these family SUVs as having top safety features, and refused warranty repairs while telling frightened owners the brake failures were normal. The defect causes miscalculations of wheel speed when braking on bumpy surfaces, leading to rapid brake release and dangerously extended stopping distances that have resulted in near-misses, collisions, and vehicles rolling into intersections.
If you own or lease a 2023-2025 Hyundai Palisade and have experienced sudden brake failures or extended stopping distances on uneven roads, you may be entitled to compensation.
The Allegations: A Breakdown
| 01 | Hyundai sold thousands of 2023-2025 Palisade SUVs containing defective anti-lock braking systems and traction control systems that cause miscalculations of wheel speed when brakes are applied on rough or uneven road surfaces, leading to rapid release and reapplication of brakes and dangerously longer stopping distances than reasonably expected. | high |
| 02 | Hyundai knew about the ABS defect before selling these vehicles through pre-production testing, pre-production design failure analysis data, early consumer complaints made to its dealer network, aggregate warranty data, and testing conducted in response to consumer complaints starting in 2022. | high |
| 03 | Hyundai concealed the defective nature of the braking system from consumers while simultaneously marketing the Palisade with boasts that it comes equipped with all the safety and advanced tech features you can think of and prominently displaying that the Insurance Institute for Highway Safety bestows the Palisade with TOP SAFETY PICK for 2024. | high |
| 04 | Hyundai failed to disclose the ABS defect in marketing materials, owner’s manuals, informational brochures, warranty booklets, and maintenance recommendations for the Class Vehicles, despite knowing the defect posed significant safety risks. | high |
| 05 | When consumers brought their vehicles to dealerships complaining of terrifying brake failures, dealerships told them the ABS system behavior is purportedly normal, the break pedal is supposed to vibrate, and there was nothing that needed to be fixed, despite consumers reporting near-collisions and inability to stop their vehicles. | high |
| 06 | Hyundai refused to repair the ABS defect under its New Vehicle Limited Warranty, which promised repair or replacement of any component found to be defective in material or workmanship under normal use during 5 years from the date of original retail delivery or 60,000 miles, whichever occurs first. | high |
| 07 | Hyundai corporate allegedly told at least one consumer that upon testing other Palisades, they discovered that this braking defect happens in ALL 2024 Palisades, yet continued selling vehicles and denying warranty repairs. | high |
| 08 | The defect causes the Anti-lock Braking System and Traction Control System to interpret wheel movement as wheel lock-up even when it is not happening, leading to longer-than-expected stopping distances since the brakes are not being applied consistently and effectively, increasing the likelihood of collisions. | high |
| 01 | The defect poses direct safety risks because it causes vehicles to stop more slowly than expected and increases the likelihood of collisions, as other drivers may not anticipate the longer stopping distance, which can cause accidents especially in congested or high-traffic areas. | high |
| 02 | Consumers reported the ABS defect caused their vehicles to continue moving forward despite pressing the brake pedal, with incidents including nearly rear-ending school buses, sliding through stop signs into intersections, almost hitting pedestrians in parking lots, and one consumer stating the vehicle will kill people if unaddressed. | high |
| 03 | Multiple owners with young children in their vehicles described terrifying experiences where brakes failed to engage properly, with one parent stating it scared me so much that after one incident I had my husband drive when I needed to drive the kids, and another reporting they almost got in a catastrophic wreck with their whole car shaking and unable to brake. | high |
| 04 | The defect causes miscalculation of wheel speed, resulting in delayed braking response where the vehicle’s systems do not apply sufficient braking force when needed, and in emergency situations this delay can prevent the vehicle from stopping in time to avoid a collision. | high |
| 05 | One owner reported that while entering a parking lot the brakes just didn’t work for at least 3 seconds, stating thank God no one was in front of me, while another described instances where nothing works not even stepping on brakes hard enough stops the vehicle and having many near misses because of this issue. | high |
| 06 | The defect gives drivers a false sense of security as they rely on ABS and traction control systems to operate their vehicles safely, believing the vehicle will stop safely even on rough or uneven roads, but when these systems malfunction the driver may not be prepared to manually correct the vehicle’s behavior, leading to hazardous situations. | medium |
| 07 | One consumer with a 2-year-old child in the vehicle reported nearly rear-ending a car with their entire family because the car refused to simply stop while going between 10-15 mph after the ABS kicked in when it shouldn’t, making it extremely dangerous for a family hauler vehicle. | high |
| 08 | Owners report being afraid to drive their vehicles, with one stating I am petrified to drive this car and another saying I feel UNSAFE in this vehicle and driving my three year old son around in it, yet they are forced to continue using vehicles they purchased or leased because Hyundai refused repairs. | medium |
| 01 | Hyundai learned about the ABS defect during the pre-release process of manufacturing, engineering, and performing durability testing on the Class Vehicles, which occurred before Hyundai began selling the Class Vehicles in 2022, yet chose to proceed with sales without disclosure or implementing a fix. | high |
| 02 | Despite receiving numerous consumer complaints about the defect made directly to Hyundai and its dealerships since 2022, with large numbers of complaints and consistency of their descriptions alerting Hyundai to this serious defect affecting the Class Vehicles, the company failed to take steps to provide Class Vehicle owners relief. | high |
| 03 | Hyundai dictates that when a repair is made under warranty, service centers must provide detailed documentation of the problem and fix describing the complaint, cause, and correction, and also save the broken part in case Hyundai decides to audit the dealership, meaning Hyundai had direct knowledge of widespread brake complaints through its own mandatory reporting system. | high |
| 04 | Hyundai reviews and analyzes warranty data submitted by its dealerships and authorized technicians in order to identify defect trends in vehicles, and uses this information to determine whether particular repairs are indicative of a pervasive defect, yet despite this systematic defect tracking chose not to address the widespread brake failures. | high |
| 05 | Hyundai profited from selling vehicles at full price while concealing that they contained a known safety defect that substantially impaired their value, with consumers paying premium prices for vehicles marketed as having top safety ratings while actually receiving defective vehicles worth significantly less. | high |
| 06 | Rather than issue a recall or service campaign to repair the widespread defect, Hyundai’s dealerships told consumers the dangerous braking behavior was normal and working as intended, allowing the company to avoid the significant costs of recalling and repairing thousands of defective vehicles. | high |
| 07 | Hyundai has not offered Class Vehicle owners compensation for the diminished value of the vehicles at the time of sale due to the defect and unacceptably high risk of being involved in a collision, leaving consumers with vehicles worth less than they paid. | medium |
| 08 | By voluntarily accepting and retaining profits from the sale of Class Vehicles containing the ABS defect with full knowledge that consumers were not receiving vehicles of the quality, nature, fitness, or value that had been represented, Hyundai has been unjustly enriched at the expense of consumers who expected safe, functional braking systems. | medium |
| 01 | Hyundai prominently displayed on its website that The Insurance Institute for Highway Safety IIHS bestows PALISADE with TOP SAFETY PICK for 2024 while simultaneously concealing that the vehicles contained a defect that impaired their ability to stop safely. | high |
| 02 | In promotional materials, Hyundai boasted that the top-of-the-line Palisade comes equipped with all the safety and advanced tech features you can think of, with standard safety equipment including Anti-lock Braking System ABS with 4-wheel disc brakes and Electronic Stability Control ESC with Traction Control Support TCS, the exact systems that were defective. | high |
| 03 | The Class Vehicles’ safety features were one of the primary reasons why Plaintiffs and other class members decided to buy or lease the Class Vehicles over the competition, meaning Hyundai’s safety marketing directly induced consumers to purchase defective vehicles they would not have otherwise bought. | high |
| 04 | Hyundai developed marketing materials, owner’s manuals, informational brochures, warranty booklets, and maintenance recommendations for the Class Vehicles that all failed to disclose the ABS Defect, creating comprehensive documentation that misrepresented the vehicles’ actual safety and functionality. | medium |
| 05 | When consumers researched vehicles prior to purchase by reviewing Hyundai Palisade specifications and features listed at Hyundai’s website, they were led to believe based on Hyundai’s representations that the Palisade was a safe and reliable vehicle, and these representations induced them to lease or purchase the vehicles. | medium |
| 06 | Hyundai made partial disclosures about the quality of the Class Vehicles without revealing the defective nature of the Class Vehicles and the ABS Defect, using selective transparency to create a false impression of safety while omitting material facts about known dangers. | medium |
| 01 | The ABS defect substantially impaired the Class Vehicles’ value as it rendered the vehicles unsafe when attempting to bring a vehicle to a stop while driving over rough or uneven road surface, the very reason Plaintiffs and other Class Owners chose the Class Vehicles over competition. | high |
| 02 | Class Vehicles were worth less money at the time of sale and thereafter because due to the ABS defect they suffer from an unacceptably high risk of being involved in a collision, causing immediate diminution in value from the moment of purchase. | high |
| 03 | Consumers would not have purchased or leased the Class Vehicles, or would have paid less for them, had they known prior to their respective time of purchase or lease that Class Vehicles contained the ABS defect, meaning every sale was tainted by Hyundai’s concealment. | high |
| 04 | Hyundai deprived Class Members of the benefit of their bargain and caused them to expend money at its dealerships or other third-party repair facilities and/or take other remedial measures related to the ABS defect contained in the Class Vehicles. | medium |
| 05 | Defects associated with the Class Vehicles’ braking system have caused the value of Class Vehicles to decrease, harming owners’ resale values and leaving them with assets worth substantially less than vehicles without these defects. | medium |
| 06 | Class Members have not received the value for which they bargained when they purchased or leased the Class Vehicles, as they paid for safe, reliable transportation but received vehicles with dangerous braking defects. | medium |
| 07 | As a result of Hyundai’s misconduct, Plaintiffs and other Class Members have been harmed and suffered actual and economic damages in that the Class Vehicles are defective and require repairs or replacement parts and are worth less money because of the defect. | medium |
| 01 | Hyundai was under a duty to disclose the defective nature of the Class Vehicles’ braking systems because it was in a superior position to know the true state of facts about the safety defect, it knew the vehicles suffered from an inherent defect and were not suitable for their intended use, consumers could not reasonably discover the defect until after purchase, and Hyundai knew consumers could not reasonably discover it. | high |
| 02 | By failing to disclose the ABS defect, Hyundai knowingly and intentionally concealed material facts and breached its duty not to do so, violating the trust consumers place in automakers to disclose known safety defects. | high |
| 03 | The facts concealed by Hyundai are material because a reasonable person would have considered them to be important in deciding whether or not to purchase the Class Vehicles, as consumers expect vehicles’ brakes to function properly and bring vehicles to a stop within reasonably expected distances. | high |
| 04 | Although Hyundai was aware of the widespread nature of the ABS defect in the Class Vehicles through multiple sources of information not available to consumers, Hyundai failed to take steps to provide Class Vehicles’ owners relief. | high |
| 05 | Consumers gave Hyundai reasonable opportunity to cure the defect by bringing vehicles to dealerships and formally notifying Hyundai through letters from counsel, but Hyundai has been unable and/or refused to repair the defect within a reasonable time. | high |
| 06 | When consumers submitted their vehicles for warranty repairs, Hyundai failed to comply with the terms of the express written warranty provided to each class member by failing to repair the ABS defect under the vehicle’s warranty within a reasonable period of time. | high |
| 07 | Multiple dealerships told consumers who complained about the terrifying brake failures that they could not replicate the problem or that they said there were no issues, using the intermittent nature of the defect as justification to deny warranty coverage despite numerous documented incidents. | medium |
| 08 | The Ohio Attorney General has made available for public inspection prior state court decisions holding that acts and omissions like Hyundai’s in this complaint, including failure to honor warranties, making false representations, and concealing dangerous defects, constitute deceptive sales practices, yet Hyundai continued these practices. | medium |
| 01 | Despite over 100 complaints filed with the National Highway Traffic Safety Administration NHTSA describing consistent brake failures in 2023-2025 Palisade vehicles starting in July 2023 and continuing through April 2025, no recall has been issued and vehicles continue to be sold with the defect. | high |
| 02 | Hyundai actively monitored NHTSA complaints during the relevant time period, demonstrating that Hyundai knew about Class Vehicles owners’ complaints of the vehicles being unable to stop safely under certain conditions at all relevant times, yet took no corrective action. | high |
| 03 | The complaint details that in a system heavily incentivizing profit, the cost-benefit analysis of addressing a widespread defect versus managing the fallout through individual complaints and legal challenges can become a deadly calculation, and Hyundai made the wrong calculation at the expense of consumer safety and financial well-being. | high |
| 04 | Regulatory bodies intended to be watchdogs for public safety can sometimes suffer from regulatory capture where they become overly influenced by the industries they regulate, or may lack resources for proactive enforcement, creating an environment that can inadvertently allow corporations to operate in legal gray zones or push the boundaries of acceptable risk. | medium |
| 05 | When defects are discovered post-sale, the financial calculation of a recall versus managing individual complaints and warranty claims can lead to decisions that prioritize the company’s bottom line over immediate consumer safety, as allegedly occurred here where Hyundai chose to deny repairs rather than implement a recall. | medium |
| 06 | The pursuit of profit maximization can incentivize companies to bring products to market quickly, sometimes before all potential safety issues are fully understood or addressed, and the temptation to cut corners, downplay safety concerns, or delay costly recalls can be immense in a marketplace driven by intense competition and shareholder value. | medium |
| 01 | This case represents a serious accusation of corporate negligence that potentially endangered thousands of consumers and their families, as the detailed accounts from plaintiffs and numerous NHTSA complaints paint a consistent and disturbing picture of vehicles failing to brake safely under common driving conditions. | high |
| 02 | If the allegations prove true, Hyundai’s conduct would represent a significant breach of consumer trust, highlighting a system where profit incentives may have tragically overshadowed public safety in marketing family vehicles. | high |
| 03 | The case underscores the critical importance of corporate accountability and transparency in an era where complex products are central to daily life, as consumers rely on manufacturers to prioritize safety above all else especially when marketing vehicles designed for families. | medium |
| 04 | Selling a vehicle, particularly a family SUV, carries an implicit promise of safety and reliability, and when that promise is allegedly broken and known defects are concealed or left unaddressed, it erodes consumer trust not just in a specific brand but in the broader system. | medium |
| 05 | This case serves as a critical reminder of the power imbalance between large corporations and individual consumers, as class action lawsuits like this one are often one of the few effective tools consumers have to challenge alleged widespread misconduct and seek redress when regulatory oversight or corporate self-policing appears to fall short. | medium |
| 06 | The lawsuit seeks to hold Hyundai accountable by demanding not only monetary damages and restitution for affected owners but also injunctive relief to compel Hyundai to repair the defective vehicles, reform its warranty, and cease misleading sales practices. | medium |
Timeline of Events
Direct Quotes from the Legal Record
“Hyundai corporate has told me that, upon testing other Palisades, they have discovered that this happens in ALL 2024 Palisades.”
๐ก This statement from an April 2024 NHTSA complaint suggests Hyundai internally confirmed the brake defect affects all 2024 model year vehicles, yet continued selling them without disclosure or recall.
“Today something very scary happened with my brakes system. For some reason it looks like the ABS system activated as I was braking over a small bump. The weird part was that car stopped braking, and I had to push the pedal extremely hard to make the car react and stop. It was very unusual and scary as I was entering a parking lot and the brakes just didn’t work for at least 3 seconds after they finally did. Thank God no one was in front of me.”
๐ก This February 2023 complaint describes a complete three-second brake failure in a parking lot, demonstrating the extreme danger the defect poses in everyday low-speed situations where pedestrians are likely present.
“I’ve had many near misses because of this issue… instances where nothing works not even stepping on brakes hard enough stops the vehicle.”
๐ก Owner testimony reveals the defect caused repeated dangerous situations where maximum brake pressure failed to stop the vehicle, indicating a fundamental failure of a critical safety system.
“I told them I was afraid and didn’t want to hit someone or a person. They said unless they could duplicate there was nothing they could do.”
๐ก This shows Hyundai dealerships refusing warranty repairs even when consumers expressed fear for safety, using inability to replicate the intermittent defect as justification to deny coverage.
“This vehicle is prone to rear-end cars in front of it when stopping and also to bouncing out in the middle of an intersection when approaching a stoplight/stop sign. It will kill people of unaddressed.”
๐ก An owner’s stark warning that the brake defect will result in fatalities if not addressed underscores the life-threatening nature of the alleged defect and Hyundai’s failure to act.
“After one time I had my husband drive when I needed to drive the kids because it scared me so much. After two weeks I started driving it again full time and the brakes locked up again and I slid and couldn’t stop… They have said they’ve never heard of this and cannot do anything without getting it to happen again. I have found multiple things online about people having the exact same issue. It is horrible and scary that they are avoiding the issue and putting lives at risk.”
๐ก This testimony reveals parents too terrified to drive their children in vehicles Hyundai marketed as family SUVs, while dealerships claimed ignorance despite widespread documented complaints.
“Hyundai reviews and analyzes warranty data submitted by Hyundai’s dealerships and authorized technicians in order to identify defect trends in vehicles. Upon information and belief, Hyundai dictates that when a repair is made under warranty (or warranty coverage is requested), service centers must provide Defendant with detailed documentation of the problem and the fix that describes the complaint, cause, and correction, and also save the broken part in the event Defendant decides to audit the dealership.”
๐ก The complaint establishes Hyundai has systematic processes to track and identify defect trends across its dealer network, meaning widespread brake complaints could not have been unknown to corporate leadership.
“In promotional materials, Hyundai boasted that the top-of-the-line Palisade comes equipped with ‘all the safety and advanced tech features you can think of,’ and prominently displays on its website that ‘The Insurance Institute for Highway Safety (IIHS) bestows PALISADE with TOP SAFETY PICK for 2024.'”
๐ก Hyundai’s marketing emphasized safety and advanced technology while allegedly concealing that the specific safety systems being promoted (ABS and traction control) were dangerously defective.
“In response, the dealership explained the ABS system behavior is purportedly normal, and the break pedal is supposed to vibrate when Mrs. Maldonado applies the breaks.”
๐ก When a plaintiff complained about terrifying brake failures, the dealership claimed the dangerous malfunction was normal expected behavior, showing a pattern of dismissing legitimate safety concerns.
“During the pre-release process of manufacturing, engineering, and performing durability testing on the Class Vehicles, which occurred before Hyundai began selling the Class Vehicles in 2022, Hyundai learned that the Class Vehicles’ common braking systems suffer from the ABS Defect.”
๐ก The complaint alleges Hyundai discovered the brake defect during pre-production testing before any vehicles were sold, meaning every sale was made with knowledge of the danger.
“The ABS Defect substantially impaired the Class Vehicles’ value as it rendered the Class Vehicles unsafe when attempting to bring a vehicle to a stop while driving over rough or uneven road surface, the very reason Plaintiffs and other Class Owners chose the Class Vehicles over competition.”
๐ก The defect directly undermined the core safety value proposition that led consumers to choose these vehicles, meaning buyers paid premium prices for dangerously defective products.
“Plaintiffs and other consumers requested a repair from Hyundai, but in response were told no repairs were available.”
๐ก Despite express warranty promises and knowledge of the dangerous defect, Hyundai told consumers seeking repairs that no fix was available, leaving them with unsafe vehicles.
“In its New Vehicle Limited Warranty, Hyundai promised a ‘repair or replacement of any component originally manufactured or installed by Hyundai Motor Company, Hyundai Motor Group, Hyundai Motor Manufacturing Alabama (HMMA), Kia Manufacturing Mexico (KMM) or Kia Motors Manufacturing Georgia (KMMG) that is found to be defective in material or workmanship under normal use and maintenance’ during ‘5 years from the date of original retail delivery or date of first use, or 60,000 miles, whichever occurs first.'”
๐ก Hyundai made explicit warranty promises to repair defective components under normal use within 5 years or 60,000 miles, but allegedly refused to honor this warranty for the brake defect.
“Reasonable consumers, like Plaintiffs, expect and assume that a vehicle’s brakes are not defective and will bring the vehicle to a stop within a reasonably expected distance. Plaintiffs and Class Members further expect and assume that Hyundai will not sell or lease vehicles with known safety defects, such as the ABS Defect, and will fully disclose any such defect to consumers prior to purchase or offer a suitable non-defective repair.”
๐ก This establishes the basic consumer expectation that braking systems will function safely, an expectation Hyundai allegedly violated while concealing the defect from buyers.
“The Anti-lock Braking System (ABS) and/or Traction Control System in the Class Vehicles are defective, causing miscalculations of wheel speed when the brakes are applied on rough or uneven road surface, which leads to the rapid release and reapplication of the brakes and results in a longer stopping distance than reasonably expected.”
๐ก This technical description explains how the defect works: the systems misread wheel speed on uneven surfaces, causing improper brake modulation that extends stopping distances beyond safe levels.
Frequently Asked Questions
Here is another article on a different Hyundai Palisade defect: https://evilcorporations.com/hyundai-airbag-failure-public-health-impact-third-row-neoliberalism/
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