A federal judge in Oakland, California, ruled that Tesla owners who claimed the company falsely advertised the driving ranges of its electric vehicles must address their concerns through individual arbitrations, rather than pursuing class action lawsuits. Judge Yvonne Gonzalez Rogers emphasized that these owners had consented to an arbitration provision when purchasing their vehicles.
The plaintiffs alleged that Tesla had misled consumers by exaggerating the distance its cars could travel on a single charge and misrepresented driving range information on vehicle dashboards. Their claims were backed by a Reuters special report that uncovered a clandestine team within Tesla tasked with suppressing driver complaints about driving range.
While Tesla and its legal representatives did not immediately respond to requests for comment, the company has previously dismissed the lawsuits’ allegations as baseless. Judge Rogers refrained from ruling on the substance of the claims but suggested she could issue an injunction against Tesla if the drivers successfully arbitrated their disputes under California’s unfair competition law and other statutes.
The plaintiffs’ attorneys criticized Tesla’s push for individual arbitration as an attempt to evade accountability for its alleged deceptive practices. Notably, Tesla adjusted its driving-range estimates for its electric vehicles in January, coinciding with the implementation of a new U.S. government regulation aimed at ensuring automakers provide accurate real-world performance data.
Source: Reuters
