LAW360 website reports a US judge has sanctioned Hyundai Motor America Corp. for failing to preserve hundreds of engines which would have been evidence in a lawsuit accusing dealerships of deliberately damaging engines to collect warranty payments.

“In a 31-page order granting sanctions in part, U.S. Magistrate Judge William Matthewman found that the automaker’s failure to preserve engines that could be key to the defense constituted bad faith and caused “substantial prejudice” to the dealerships, and therefore an adverse inference instruction against Hyundai is warranted.”