A judge has ruled that Tesla vehicle owners who claim the company misled about its Autopilot features must pursue their claims in individual arbitration rather than court, handing a victory to the electric carmaker. The ruling means Tesla will not have to face class action claims from larger groups of vehicle owners. The judge stated that the plaintiffs had agreed to arbitrate any legal claims against Tesla when they accepted its terms and conditions while purchasing the vehicles. A lawyer for the plaintiffs said he was prepared to file thousands of individual arbitration cases on behalf of Tesla customers.
The lawsuit alleges that Tesla repeatedly made false statements indicating that its advanced driver assistance systems (ADAS) technology was close to delivering fully self-driving vehicles. The plaintiffs claim they purchased the optional ADAS technology for thousands of dollars, but instead of delivering on its promises, Tesla’s technology has been unreliable and has led to accidents, injuries, and deaths. Tesla has denied wrongdoing and sought to send the claims to arbitration. The judge rejected claims by the plaintiffs that the arbitration agreements were unenforceable.
This ruling comes at a crucial time as the first US trial over allegations that Tesla’s Autopilot feature caused a death is currently underway. The plaintiffs in that trial argue that the Autopilot system caused a Model 3 to veer off a highway, resulting in a fatal crash. Tesla has claimed that the accident was due to driver error. The ruling in favor of individual arbitration means Tesla can avoid potential class action lawsuits and defend its marketing practices in a more private setting.
/cloudfront-us-east-2.images.arcpublishing.com/reuters/5WEDZF3QYBKEHDP7R3G4V3HDCM.jpg&description=Tesla+wins+Autopilot+case+with+ruling+for+mandatory+arbitration+in+owners%E2%80%99+disputes.){kind=link}