Published
June 20, 2026
Allegations Only · No Settlement Yet
This article describes a class action complaint. The statements below are unproven allegations. Hyundai has not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.
Status
Complaint Filed
Proposed class action · Steeneck v. Hyundai Motor America, Inc.
Vehicles
~568,576 model-year 2020–2025 Palisades
NHTSA recall Campaign No. 26V034 · third-row side curtain airbags
Allegation
Recall didn't fix the third-row airbag defect
Suit says the airbags fail federal standard FMVSS No. 226 (Ejection Mitigation)
Can I Claim?
No — nothing to claim yet
No settlement, no fund, no claim form at this stage
What Is This About?
Hyundai is facing a proposed class action lawsuit alleging that its popular Palisade SUV has defective third-row side curtain airbags that may not deploy properly in a crash — and that the recall Hyundai issued in early 2026 does not actually fix the problem.The case is captioned Steeneck v. Hyundai Motor America, Inc., Case No. 2:26-cv-00636, and is pending in the U.S. District Court for the Eastern District of New York. According to the complaint, it was filed in February 2026 by a Palisade owner who seeks to represent a proposed class of people who bought or leased the affected SUVs. Hyundai has not been found liable, and the claims remain unproven.
The Recall: ~568,576 Palisade SUVs
In January 2026, Hyundai announced a recall of roughly 568,576 model-year 2020–2025 Palisade SUVs, assigned NHTSA Campaign Number 26V034. According to the recall, the side curtain airbags protecting third-row occupants may deploy improperly in a crash, which can cause the vehicles to fail to comply with Federal Motor Vehicle Safety Standard (FMVSS) No. 226, "Ejection Mitigation" — the standard designed to reduce the risk of occupants being thrown from a vehicle in a rollover. Hyundai has said it would notify owners, with recall letters expected to be mailed around March 23, 2026, and that it would reimburse owners for related out-of-pocket repair costs.At the time the lawsuit was filed, the recall remedy was still under development and none of the vehicles had been repaired. The recall itself is a separate process from the lawsuit; owners can check whether a specific vehicle is included by entering its VIN at NHTSA's recall lookup.
What the Lawsuit Alleges
The complaint alleges that the third-row side curtain airbags in 2020–2025 Palisades are defective because they fail to meet NHTSA "headform displacement" requirements — essentially, testing showed the airbags may not keep an occupant's head within safe limits in a rollover — leaving the vehicles dangerous and noncompliant with federal safety standards. The suit alleges Hyundai advertised and sold the Palisades as safe family vehicles without warning buyers about the third-row airbag risk.Critically, the plaintiff alleges that Hyundai's recall does not cure the defect. According to the complaint, owners are left with vehicles that still carry an airbag system the suit says cannot reliably protect third-row passengers, even after the recall process plays out. The suit alleges that owners overpaid for their vehicles and that the SUVs are worth less than what buyers were promised because of the unremedied safety issue.
Based on those allegations, the complaint brings claims commonly raised in auto-defect class actions, which can include:
• Breach of express and implied warranty
• Violation of state consumer-protection and deceptive-practices statutes
• Fraudulent concealment / failure to disclose
• Unjust enrichment
For relief, the plaintiff seeks damages, including for the alleged lost value of the vehicles, along with other equitable relief on behalf of the proposed class. As with any complaint, these are allegations only. A court has not ruled on whether the Palisade's airbags are defective, whether the recall is adequate, or whether Hyundai did anything wrong.
Is There a Hyundai Palisade Settlement Yet?
No. Steeneck v. Hyundai Motor America, Inc. is a lawsuit, not a settlement.That means:
• There is no settlement fund.
• There is no claim form.
• There is no payout, and no deadline to act.
• You do not need to do anything to "join" at this stage.
The filing of a complaint is the very beginning of a case. Hyundai has not been found liable simply because a lawsuit was filed, and the case remains pending unless and until a newer docket entry says otherwise. If the case is ever resolved through a settlement, or a class is certified, a formal claims process with its own eligibility rules and deadlines would be announced separately. The recall, by contrast, is a real and active safety process — owners should still follow it regardless of the lawsuit.
Who Could Be Affected?
The complaint describes a proposed class of people who bought or leased 2020–2025 Hyundai Palisade SUVs covered by the recall. Because no class has been certified yet, the exact class definition — including which model years, states, and time periods are covered — is not final and could change as the case proceeds.People most likely to follow this case include:
• Owners and lessees of 2020–2025 Hyundai Palisade SUVs
• Families who regularly carry passengers in the third row
• Anyone whose Palisade is included in NHTSA recall 26V034
There is nothing to file in the lawsuit right now. Following the recall and keeping your purchase and service records is the main practical step at this stage.
What Should Palisade Owners Do Now?
Even though there is nothing to claim in the lawsuit, owners can take concrete steps tied to the recall. Check your VIN at nhtsa.gov/recalls to confirm whether your vehicle is included, watch for Hyundai's recall notification letter, and follow the repair instructions once Hyundai's remedy is available. Keep records of your purchase or lease and any related repair costs. Following the case is the only action available on the litigation side; no purchase or sign-up is required to be part of any future class.This page is informational and is not legal advice. Owners with questions about their individual rights may want to speak with a licensed attorney in their state.
What Happens Next?
From here, the case will move through the normal early stages of federal litigation. Hyundai may file a response to the complaint or a motion to dismiss, the parties may exchange information in discovery, and the plaintiff would at some point ask the court to certify a class. Separately, Hyundai's recall remedy is expected to be finalized and rolled out to dealers. Any of these steps can take months, and the case could be amended, consolidated with other Palisade suits, or resolved along the way.OpenClassActions.com will continue watching the docket for any major updates, including a motion to dismiss, class certification activity, settlement talks, or any future claim form. For related auto-defect litigation, see our coverage of the Honda Odyssey airbag deployment lawsuit and the GM L87 6.2L V8 engine-failure lawsuit.
Frequently Asked Questions
Is there a Hyundai Palisade airbag settlement yet?
No. The case is a proposed class action lawsuit. There is no settlement, no fund, and no claim form. Hyundai has not been found liable just because a lawsuit was filed.What does the Hyundai Palisade airbag lawsuit allege?
According to the complaint, 2020–2025 Palisade third-row side curtain airbags may not deploy properly in a crash, fail federal safety standard FMVSS No. 226, and were sold without warning buyers — and the January 2026 recall did not fix the defect. The allegations are unproven.Which Hyundai Palisade models are covered by the recall?
The related NHTSA recall (Campaign No. 26V034) covers roughly 568,576 model-year 2020–2025 Palisade SUVs. Check your VIN at nhtsa.gov/recalls to confirm whether a specific vehicle is included. The recall is separate from the lawsuit.What should Hyundai Palisade owners do now?
Check your VIN at nhtsa.gov/recalls, watch for Hyundai's recall letter (expected around March 23, 2026), and follow the recall instructions once a remedy is available. Because the lawsuit is not a settlement, there is nothing to claim and no deadline. Keep your purchase and repair records in case a class is later certified.Sources
• CBS News — "Hyundai recalls nearly 569,000 Palisade SUVs over faulty air bag"• Autoblog — "Over 500,000 Hyundai Palisade SUVs Hit With Airbag Lawsuit After Recall"
• NHTSA — Recall Campaign No. 26V034 (Hyundai Palisade third-row side curtain airbags)
• Court records — Steeneck v. Hyundai Motor America, Inc., No. 2:26-cv-00636 (E.D.N.Y., filed Feb. 2026)
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Status
Complaint Filed — Proposed Class Action
Case Title
Steeneck v. Hyundai Motor America, Inc.
Case Number
2:26-cv-00636
Court
U.S. District Court, E.D. New York
Date Filed
February 2026
Vehicles
~568,576 model-year 2020–2025 Hyundai Palisade
NHTSA Recall
NHTSA Campaign 26V034
