US appeals court blocks class actions over Tesla's self-driving claims
TSLA•A US appeals court overturned class certification for California Tesla buyers alleging the company misled them about its full self-driving technology. The ruling affects thousands of buyers but does not decide the merits of their claims, which remain pending.
1. Class action certification overturned
A three-judge panel of the 9th US Circuit Court of Appeals overturned orders allowing Tesla customers in California to pursue class action claims over the company's self-driving claims. The panel said individualized questions about what buyers saw before purchasing meant the claims could not proceed as a class action.
2. Claims remain pending
The ruling means thousands of buyers cannot, for now, pursue their claims jointly in a single case. The plaintiffs allege Tesla misrepresented vehicles’ hardware capabilities and persuaded customers to pay extra for software they say does not work; Tesla has denied the claims.
3. Dispute over marketing statements
A lower court had found that prospective buyers were likely exposed to Tesla’s website claim that vehicles sold from October 2016 onward contained hardware needed for full self-driving capability. The appeals panel said the plaintiffs could not show that all class members had seen the allegedly false statement. Plaintiffs’ lawyers said the panel did not fully appreciate the importance of the hardware statement to Tesla’s marketing campaign.
