Class action lawsuit denied
A California judge has ruled against a group of Tesla owners seeking to form a class action lawsuit against the automaker. The lawsuit alleged that Tesla had misled the public regarding the capabilities of its Autopilot system. The judge’s decision has significant implications for Tesla, as it prevents owners from uniting in a class action, potentially giving the company an advantage.
Arbitration agreements prevail
U.S. district Judge Haywood Gilliam’s ruling pointed out that the Tesla owners involved in the lawsuit had previously agreed to arbitrate any legal claims when they accepted Tesla’s terms and conditions while purchasing Autopilot. Although one plaintiff did not sign such an agreement, the judge determined that their lawsuit had been filed after an unreasonable delay.
Allegations of false promises
The owners’ complaint centered on Tesla’s alleged false statements about the capabilities of its advanced driver assistance systems. They claimed that Tesla had repeatedly suggested it was close to delivering fully autonomous vehicles, which encouraged them to invest in additional features when buying their cars. However, instead of fulfilling these promises, the plaintiffs argued that Tesla’s technology had been involved in accidents, injuries, and fatalities due to its unreliability.
In summary, Tesla has successfully avoided a class action lawsuit as a California judge ruled in favor of individual arbitration based on agreements signed during the purchase of Autopilot. The decision has implications for Tesla’s legal battles and how owners can pursue claims related to the capabilities of its Autopilot system.