Appeals Court Rules Against Tesla FSD Class Action Certification

An appeals court has vacated an order allowing Tesla customers in California to proceed with class action claims against the electric vehicle maker concerning its "full self-driving" technology. The three-judge panel determined that the case could not be sustained as a class action due to numerous individualized questions about what buyers saw before making a purchase. This ruling represents a temporary victory for Tesla, which had sought to overturn lower court orders certifying three classes of buyers. Thousands of these California buyers are now prevented from pursuing their claims together in a single case. The decision does not address the merits of the plaintiffs' core allegations of false advertising. They contend Tesla misrepresented hardware capabilities for its "full self-driving" feature, leading customers to pay for software that does not function as advertised. The plaintiffs' legal team stated they believe the panel did not fully grasp the unique circumstances and the significance of hardware statements in Tesla's marketing. The underlying case, which alleges misrepresentation of hardware for "full self-driving" capability in vehicles sold since October 2016, remains pending. The appeals court panel noted that plaintiffs could not demonstrate all class members were exposed to the allegedly false statement made on Tesla's website. The US Chamber of Commerce had supported Tesla, arguing that the lower court's ruling could significantly increase costs for businesses and consumers related to class proceedings.