Class Action Lawsuit Says Hyundai Palisade Recall Failed to Fix Third-Row Airbag Defect In Over 500K Vehicles

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A proposed class action lawsuit alleges that Hyundai failed to adequately notify consumers of the "nature and consequences" of a recall affecting thousands of 2020-2025 model year Palisade SUVs and has continued to market and sell the vehicles as-is without repairing or correcting the problem.

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The 24-page defective product lawsuit contends that Hyundai has failed to appropriately inform drivers of a defect potentially affecting the third-row side curtain airbags in more than 500,000 Palisade vehicles. The complaint also takes issue with Hyundai’s alleged failure to assume responsibility for the problem and the dangers the defect poses, particularly for passengers in the third row, the suit says.

According to the filing, Hyundai, despite the recall, has not provided drivers or third-party dealers with an effective repair for the airbag defect.

The suit was filed in the wake of a January 2026 recall by the National Highway Traffic Safety Administration (NHTSA), which was issued after the North American Safety Decision Authority (NASDA) determined that the Hyundai Palisades at issue did not comply with Federal Motor Vehicle Safety Standard No. 226, which is designed to reduce the risk of a passenger’s ejection out of a side window during a crash.

Per the case, Hyundai was first informed by the NHTSA in April 2025 that the 2025 Palisade had failed compliance tests, specifically that the vehicle’s third-row side airbags did not meet the allowable headform displacement requirements.

Related Reading: 2023-2025 Hyundai Palisade Vehicles Plagued by Brake Problems, Class Action Suit Claims

Per the complaint, the Hyundai Palisade airbag defects stem from failures in “design, development, testing, and validation” conducted by the automaker during the pre-sale stage of the manufacturing process.

Despite the recall and Hyundai’s acknowledgement of the third-row airbag defect, no real relief has been offered to impacted drivers, and no warning has been provided to prospective buyers or lessees, the case maintains.

“Despite the Recall and knowledge of the Defect and safety issues affecting the Class Vehicles, Defendant continued to market and sell the Class Vehicles ‘as is’ and without either repairing or correcting the defective condition or providing notice to owners or potential purchasers of the Class Vehicles,” the complaint summarizes.

The Hyundai airbag defect class action lawsuit looks to represent all consumers or entities who purchased or leased one or more 2020-2025 model year Hyundai Palisades in the United States with production dates between April 10, 2019 and June 16, 2025.

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