Summary
- Judge dismissed parts of the suit against Tesla regarding phantom braking
- Plaintiff claims that Tesla intentionally concealed the issue from consumers will move forward
- Lawsuit involves false collision warnings by Tesla’s forward collision monitoring system
- National Highway Traffic Safety Administration opened a preliminary investigation into 416,000 Model 3 and Y units
- Plaintiffs may file an amended complaint to revive the insurance claims piece of the suit
Article
A lawsuit against Tesla involving phantom braking in its electric vehicles has been allowed to move forward by a U.S. District Court Judge, who dismissed some parts of the case but permitted claims that the company intentionally hid the issue from consumers. The suit, filed as a class action lawsuit, focuses on Tesla’s forward collision monitoring system falsely alerting drivers to impending collisions, even when there is no actual danger. Plaintiffs claim that this unintended braking caused insurance premiums to rise, and they allege that Tesla was aware of the issue as early as 2015. Tesla denied knowing about the problem when selling vehicles to plaintiffs.
The judge dismissed claims that Tesla owners were forced to pay higher insurance premiums due to issues with the EVs’ collision monitoring system but allowed the lawsuit to proceed based on allegations that Tesla concealed the phantom braking problem. Plaintiffs argued that the automaker’s online presence and marketing materials failed to disclose the issue, leading to increased insurance costs for Tesla owners. The judge stated that the suit successfully connected the allegations of Tesla withholding information on its website to the company’s front-facing online presence that consumers rely on when making purchases.
Following the lawsuit, the National Highway Traffic Safety Administration (NHTSA) initiated a preliminary investigation into 416,000 Model 3 and Y units due to the unintended braking issue. The NHTSA received 354 complaints but did not find any accidents or injuries related to the problem. The agency has not escalated the investigation since its opening. It is unclear if the NHTSA’s findings will impact the ongoing lawsuit against Tesla regarding phantom braking in its electric vehicles.
Plaintiffs in the lawsuit have the opportunity to file an amended complaint if they wish to revive the insurance claims aspect of the case. Tesla’s lawyers argued that the plaintiffs did not provide specific evidence of the company concealing information about the phantom braking issue. The judge’s decision to allow the lawsuit to move forward based on claims of intentional concealment suggests that there may be validity to the allegations against Tesla. The case highlights the potential legal and financial consequences for automakers who fail to disclose safety issues to consumers.
Overall, the lawsuit against Tesla regarding phantom braking in its electric vehicles has been allowed to proceed, with certain parts of the case dismissed but claims of intentional concealment upheld by the judge. The ongoing legal battle sheds light on the importance of transparency and accountability in the automotive industry, particularly when it comes to safety issues that may impact consumers. As the lawsuit progresses, it will be interesting to see how Tesla responds to the allegations and what implications the case may have for the company’s reputation and future business practices.
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