The Hyundai Theta settlement was an agreement by the carmaker, as well as sister firm Kia, to pay $1.3 billion to settle lawsuits over the Theta II engine. The Theta II was found to be defective, including a propensity to catch on fire, but Hyundai and Kia did not order a recall. A judge awarded the sum to class members of several consolidated Hyundai class action lawsuits.