Tesla Reaches Enhanced Autopilot Feature Class Action Settlement

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Tesla Inc. has reportedly agreed to settle a class action lawsuit accusing the electric car maker of misleading consumers about an enhanced autopilot feature.

The proposed Tesla settlement would resolve a class action lawsuit, which was filed in March 2017 and alleged that Tesla misrepresented that buyers of the Model S could pay $5,000 for “Enhanced Autopilot” features that would reportedly become available in December 2016.

The enhanced autopilot feature was to be rolled out through software updates, the Tesla class action lawsuit says. However, the rollout of these features was allegedly delayed, and, once it was released, the plaintiffs say that the software release was “essentially unusable and demonstrably dangerous.”

The enhanced autopilot feature involved a limited front collision warning and a traffic-ware cruise control system, which the plaintiffs say is “dangerously defective.” Other safety features were rolled out later, but some had not been released by the time the amended Tesla class action lawsuit was filed last July.

The Tesla class action lawsuit points to videos posted online which show Model S vehicles with the autopilot engaged crossing yellow lines, veering toward curbs, and “behaving as if a drunk driver is behind the wheel.” The plaintiff argue that “Tesla had to know how deeply flawed, raw, and untested the software was and remains.”

The plaintiffs say they would not have purchased the Tesla vehicles or they would not have paid for the enhanced autopilot system if they had known that Tesla had misled them.

The Tesla class action lawsuit was filed on behalf of a proposed Class of consumers in the United States who purchased or leased a Model S or Model X vehicle equipped with hardware for the enhanced autopilot system. They also sought to represent Classes of California, Colorado, Florida and New Jersey drivers.

The plaintiffs asked for buyback options for affected Class Members and sought an injunction to prevent Tesla from continuing to engage in deceptive marketing. They also sought restitution and punitive damages for Tesla’s “knowing fraud that garnered it illicit profits for a product suite that does not exist as promised and puts drivers at risk.”

Details about the proposed Tesla class action settlement were not disclosed. According to court documents, the plaintiffs are planning to file a motion seeking preliminary approval of the deal as soon as they are given a hearing date.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs are represented by Steve W. Berman, Thomas E. Loeser and Robert F. Lopez of Hagens Berman Sobol Shapiro LLP.

The Tesla Enhanced Autopilot Class Action Lawsuit is Sheikh, et al. v. Tesla Inc., Case No. 5:17-cv-02193, in the U.S. District Court for the Northern District of California.