Hyundai Palisade Airbag Lawsuit

Investigating Consumer Claims Over Third-Row Side Airbag Noncompliance and Diminished Value

Hyundai has recalled 2020–2025 Hyundai Palisade SUVs, over 500,000 vehicles, after regulators identified potential noncompliance with FMVSS No. 226 (Ejection Mitigation) involving third-row side curtain airbags. The recall concerns whether the airbags perform as required to help reduce ejection risk in certain crashes.

Palisade owners and lessees have allegedly paid a premium for vehicles marketed for their safety, and would have paid less, or chosen differently, had they known about the alleged airbag issue and the absence of a complete fix at the time of sale/lease. 

Kershaw Talley Barlow is investigating potential consumer claims nationwide on behalf of Palisade owners and lessees impacted by this recall and the related alleged economic losses (e.g., overpayment, diminished value, loss of benefit of the bargain).

If you own or lease a 2020–2025 Hyundai Palisade and have concerns about this recall or  how this recall affects the value of your vehicle, call (916) 520-6639 or contact us online for a free, confidential consultation.

Why Choose Kershaw Talley Barlow?

Automotive defect and consumer cases are hard-fought and require significant experience and resources. Manufacturers defend them aggressively, and the outcome often turns on disciplined case-building and review and analysis of technical records.

Clients choose Kershaw Talley Barlow because we offer:

• Over $1 Billion Recovered in verdicts and settlements
• 100+ Years of Combined Experience in complex, high-stakes litigation
• Proven Results Against Major Corporate Defendants
• Scientific & Technical Firepower through in-house science and data expertise
• Free Consultations & Contingency Representation (no fees unless we recover compensation)

Proven Results in Complex Corporate Litigation

Our team has built a record of success litigating complex cases against some of the nation’s largest corporations, including various automakers. 

Some examples of our results include: 

• $390 Million – American Honda Motor Co. (MDL-related settlement)
• $211 Million – BMW of North America, LLC (class action settlement)
• $87 Million – United Parcel Service, Inc. (class action settlement)
• $45 Million – Ford Motor Company (jury verdict and judgment)

Recall Overview: What Hyundai Reported and What the Recall Covers

Hyundai issued a safety recall affecting 2020–2025 Palisade SUVs after compliance testing raised concerns that the third-row side curtain airbags may not meet Federal Motor Vehicle Safety Standard No. 226 (Ejection Mitigation). In plain terms, the issue is whether the curtain airbag effectively restrains passengers in a crash and provides the required level of protection intended to reduce ejection risk in certain crash conditions.

Hyundai has indicated a remedy is still under development and that owners will be notified when a fix is available. 

Key recall details include:

• Affected vehicles: Hyundai Palisade model years 2020–2025 (production range reported as April 10, 2019 to June 16, 2025)
• Issue described: Potential noncompliance with FMVSS No. 226 involving third-row side curtain airbags
• Status of remedy: Reported as in development (as of mid-February)
• NHTSA campaign number: 26V034 (Hyundai recall number: 292)

The Palisade is marketed as a family-oriented SUV, and third-row safety performance is a major consideration for many buyers and lessees. When a recall involves airbags, especially with a remedy not immediately available, the value, resale value, and confidence in the vehicle is severely impacted.

Potential Allegations 

Owners and lessees of 2020-2025 Hyundai Palisade vehicles assert that:

• The third-row side curtain airbags are defective and/or noncompliant with applicable safety standards;
• Hyundai knew of the issue based on its own testing, investigation, warranty claims, and consumer complaints; and
• Consumers suffered financial harm (including overpayment and diminished value) because they purchased or leased vehicles without adequate disclosure of the alleged defect and safety-related consequences. 

Our role in this investigation is to help affected consumers understand the issue and evaluate whether their fact pattern and experience supports a viable claim.

These Potential Cases Are Not Just “About a Recall”

For many consumers, the legal concern is not only whether a recall exists. It’s what the recall means for the vehicle’s value, what consumers were not told at the time of purchase or lease, and that there is currently no identified fix available for the alleged defect.

Depending on the facts, a consumer claim may focus on issues like:

• Whether the safety issues underlying the recall constitute material undisclosed issues;
• Whether the value of the vehicle is impacted by the alleged defect;
• Whether owners/lessees are left with out-of-pocket costs, trade-in impacts, or lease-end complications; and
• Whether uniform conduct and alleged defects support coordinated litigation.

Potential Legal Claims in Hyundai Palisade Litigation

Potential legal claims that could be asserted in a case involving the alleged third-row, side-curtain airbag defect include:

• Consumer Fraud / Unfair or Deceptive Practices: whether representations and omissions allegedly misled reasonable consumers about safety-related features of the vehicle.
• Breach of Express Warranty / Implied Warranty: whether the vehicle allegedly failed to meet standards consumers are entitled to expect or that are consistent with the manufacturer’s warranties.
• Magnuson–Moss Warranty Act (MMWA): a federal law governing consumer product warranties and often asserted in consumer vehicle cases.
• Unjust Enrichment / Overpayment Theories: whether consumers allegedly paid more than they otherwise would have had they known of the alleged defect and whether the manufacturer received an unjust benefit at the expense of the consumer. 

Do I Have a Case?

You may be a good candidate for a case review if:

• You own or lease a 2020–2025 Hyundai Palisade included in recall 26V034 / Hyundai 292 
• You believe nondisclosure of the alleged third-row, side-curtain airbag defect affected what you paid, your purchase decision, and/or your lease terms
• You have experienced trade-in value impacts, out of pocket repair costs, failed sale attempts, or other financial consequences you can document
• You still have your purchase/lease paperwork, financing documents, or vehicle listing materials
• You can provide a basic timeline (purchase/lease date, recall awareness date, dealer communications, etc.)

Potential Compensation in Alleged Consumer Vehicle Defect Claims

If a claim is viable, potential recovery may include:

• Diminished value (loss in resale/market value)
• Overpayment / benefit-of-the-bargain damages (what you paid vs. what you would have paid had the alleged defect been disclosed)
• Out-of-pocket costs tied to the alleged defect (e.g., for repairs, diagnostics)
• Statutory remedies and attorneys’ fees where authorized by consumer-protection laws 

How Kershaw Talley Barlow Can Help

Our firm handles complex, high-stakes cases against companies that have harmed consumers. As part of our investigation into alleged Palisade side-curtain airbag defects, our team can:

• Evaluate whether your vehicle is included in the recall
• Assess your potential damages based on models often used in consumer vehicle defect cases (overpayment/diminished value/out-of-pocket expenses/benefit of the bargain)
• Develop and execute a litigation strategy if representation is appropriate

Call for a FREE Consultation: (916) 520-6639

If you own or lease a Hyundai Palisade (2020–2025) and believe this recall has impacted the value of your vehicle, your purchase or lease decision, the deal you made, and/or you have paid money to diagnose or repair the alleged side-curtain airbag defect Kershaw Talley Barlow wants to hear from you.

Call (916) 520-6639 or contact us online. We are reviewing potential cases nationwide.