Hyundai Class Action Lawsuit Alleges Engine Defect Should Have Resulted in Recall Actions

Plaintiffs claim their Hyundai Santa Fe’s 3.3L Lambda II engine failed prior to the vehicle being driven 80,000 miles.

A California couple has filed a class action lawsuit alleging that their Hyundai Santa Fe’s 3.3L Lambda II engine failed before reaching 80,000 miles due to a design defect that causes excessive internal wear and premature engine damage.

The complaint (PDF) was brought by Jason Burns and Allison Burns in the U.S. District Court for the Central District of California last month, naming Hyundai Motor Company and Hyundai Motor America as defendants.

Hyundai is one of the largest automobile manufacturers in the U.S., selling millions of vehicles annually. However, in recent years hundreds of thousands of its vehicles have allegedly contained a dangerous internal defect, which could lead to premature engine failure.

According to the Burnses’ lawsuit, this failure could occur at almost any time, with little to no warning, resulting in a loss of vehicle control, accidents and fires, which may cause serious injuries for drivers or passengers.

Jason and Allison Burns say they bought a used 2019 Hyundai Santa Fe for $25,000 in May 2019. The SUV, which had one prior owner and 17,350 miles on the odometer, came equipped with a 3.3-liter Lambda II GDI engine.

However, less than five years later, the engine reportedly failed without warning. According to the lawsuit, the vehicle stalled and lost power in April 2024 with under 80,000 miles, which was the result of a defect caused by excessive bearing wear, metal debris, and oil contamination that destroyed the engine’s rotating assembly.

The couple claims Hyundai has long known about the problem through internal testing, warranty data and customer complaints but failed to issue a recall or disclose the risk. When they sought warranty coverage, the company allegedly denied their claim despite the failure occurring within the powertrain warranty period, leaving them with thousands of dollars in repair costs.

Court filings describe the breakdown as catastrophic, marked by a loud bang, smoke, oil leakage and a hole in the engine block consistent with rod bearing failure. Photos attached to the complaint reportedly match damage seen in previous Hyundai recalls involving similar engines.

The lawsuit notes Hyundai has recalled other vehicles with Lambda II and Theta II engines for the same issue but excluded certain Santa Fe models that share nearly identical parts. The Burnses argue the company misled consumers by promoting its “America’s Best Warranty” while refusing to cover known engine defects.

They also accuse Hyundai of concealing a 15-year, 150,000-mile extended warranty quietly introduced in 2024 after federal regulators began investigating similar engine failures. The couple says they were never notified about the coverage and were instead persuaded to sell their inoperable vehicle at a loss.

The complaint references a February 2024 petition filed with the U.S. National Highway Traffic Safety Administration (NHTSA) over a nearly identical failure at 61,000 miles. The Burnses contend Hyundai expanded its warranty in response to that review to avoid a formal recall, while continuing to deny coverage for affected owners.

In August 2024, Hyundai allegedly issued a confidential technical service bulletin to dealerships outlining the extended warranty, labeled “for dealer use only.” The couple says that restriction kept second-hand owners like them from learning about the coverage, even though it was intended to apply to all vehicles with the defective 3.3L Lambda II engine.

“If Plaintiffs had known of the Engine Defect’s existence at the time of their purchase, then they would not have purchased their Class Vehicle, regardless of whether the Defect had yet manifested in their Class Vehicle at the time of purchase.”

— Jason Burns and Allison Burns v. Hyundai Motor Company et al

The Burnses raise allegations of untrue, misleading and deceptive advertising, unlawful, unfair and fraudulent business acts and practices, breach of express and implied warranties, and violation of the California Consumer Legal Remedies Act.

They are seeking class action certification for their complaint, in addition to actual, compensatory, general, special, incidental, statutory, punitive and consequential damages, as well as a court order requiring Hyundai to recall the affected engines, reimburse owners for repair costs, and fully disclose the defect to all vehicle owners and lessees.

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