defective

A California Court of Appeal decision recognizing an unusual and potentially far-reaching negligence duty for product manufacturers is now before the California Supreme Court. In the 
Gilead Tenofovir Cases, the Court held that, in “appropriate circumstances,” a manufacturer’s duty of reasonable care to users of its product can extend beyond the traditional obligation not to place a defective product into the stream of commerce. The decision may have wide implications for all manufacturers as the newly articulated duty is grounded in general negligence principles, not limited to drug manufacturers.

A Multidistrict Litigation started by a TikTok trend of individuals breaking into cars recently settled for an estimated $200 million. The Plaintiffs alleged that the Defendants—Hyundai and Kia—knowingly sold defective vehicles that were vulnerable to theft while also asserting that Defendants prioritized profits over safety. The vehicles at issue included 2011-2022 Kia vehicles and 2015-2022 Hyundai vehicles that were equipped with traditional “insert-and-turn” steel key ignition systems. Plaintiffs argued that vehicles lacking immobilizer technology were particularly susceptible to theft. According to Plaintiffs, without an immobilizer, anyone with a USB cable could steal the vehicle. Plaintiffs’ lawsuit encompassed various claims, including consumer fraud, unjust enrichment, and deceptive trade practices.