Posts Tagged: Jury

Tesla’s Autopilot was not to blame for fatal 2019 Model 3 crash, jury finds

A California jury has found that Tesla was not at fault for a fatal 2019 crash that allegedly involved its Autopilot system, in the first US trial yet for a case claiming its software directly caused a death. The lawsuit alleged Tesla knowingly shipped out cars with a defective Autopilot system, leading to a crash that killed a Model 3 owner and severely injured two passengers, Reuters reports.

Per the lawsuit, 37-year-old Micah Lee was driving his Tesla Model 3 on a highway outside of Los Angeles at 65 miles per hour when it turned sharply off the road and slammed into a palm tree before catching fire. Lee died in the crash. The company was sued for $ 400 million plus punitive damages by Lee’s estate and the two surviving victims, including a boy who was 8 years old at the time and was disemboweled in the accident, according to an earlier report from Reuters.

Lawyers for the plaintiffs argued that Tesla sold Lee defective, “experimental” software when he bought a Model 3 in 2019 that was billed to have full self-driving capability. The FSD system was and still is in beta. In his opening statement, their attorney Jonathan Michaels also said that the “excessive steering command is a known issue at Tesla.”

Tesla’s defense argued that there was no such defect, and that an analysis cited by the plaintiffs’ lawyers identifying a steering issue was actually looking for problems that were theoretically possible. A fix to prevent it from ever happening was engineered as a result of that analysis, according to the company. Tesla blamed human error for the crash, pointing to tests that showed Lee had consumed alcohol before getting in the car, and argued that there’s no certainty Autopilot was in use at the time.

The jury ultimately found there was no defect, and Tesla was cleared on Tuesday. Tesla has faced lawsuits over its Autopilot system in the past, but this is the first involving a fatality. It’s scheduled to go on trial for several others in the coming months, and today's ruling is likely to set the tone for those ahead.

This article originally appeared on Engadget at https://www.engadget.com/teslas-autopilot-was-not-to-blame-for-fatal-2019-model-3-crash-jury-finds-210643301.html?src=rss

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Jury reduces Tesla’s $137 million racism lawsuit penalty to $3.2 million

Back in 2021, a San Francisco court ordered Tesla to pay Owen Diaz, a former Black contract worker who accused the company of enabling a racist workplace, $ 137 million in damages. It was one of the highest amounts awarded to an individual suing on the basis of discrimination, but the appeals that followed had lowered it significantly. While US District Judge William Orrick affirmed the jury's original verdict, he found the original damages awarded to Diaz "excessive" and lowered the total to $ 15 million. Now, a San Francisco federal jury has reduced the amount even further and has ordered Tesla to pay Diaz $ 3.2 million only. 

The former elevator operator at Tesla’s Fremont assembly plant rejected the $ 15 million award Orrick had proposed and instead sought for a retrial. In the latest hearing, Diaz again recounted his experiences working for Tesla, where he said he and his fellow Black workers were subjected to racial slurs. He also said that he was made to feel unsafe at work and that other workers left drawings of swastika and racist graffiti, such as Inki the Caveman, in his workspace and the company restrooms. 

Diaz's lawyers urged the jury to penalize Tesla, a company currently worth over $ 600 billion, an amount that will get its attention. But Tesla's lawyer Alex Spiro reportedly argued that Diaz should only be awarded half his salary. He apparently characterized Diaz as a liar in court, who misstated how long he worked at the automaker and who exaggerated his testimonies and the abuse he suffered to gain a bigger payout. 

We may not be seeing the end to this case, though. According to the Los Angeles Times, Diaz's lawyer believes the jury decided on awarding him only $ 3 million in punitive damages and $ 175,000 in non-economic damages because he was wrongly attacked by the defense. He said Tesla's strategy to "minimize and sanitize" worked and that he has already filed a request for a new trial due to "misconduct."

This article originally appeared on Engadget at https://www.engadget.com/jury-reduces-teslas-137-million-racism-lawsuit-penalty-to-32-million-060414307.html?src=rss
Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Jury rules Elon Musk is not liable for shareholder losses after ‘funding secured’ tweets

Elon Musk is off the hook for his 2018 tweets claiming he had “funding secured” to take Tesla private for $ 420 a share. A jury found that Musk was not liable for Tesla investors’ losses, following a weeks-long trial in San Francisco.

The verdict is a major victory for Musk, who could have been liable for billions of dollars in damages. Musk had testified in federal court that just because he tweets something, it "does not mean people believe it or will act accordingly." He also argued that he could have used his shares of SpaceX to fund the deal.

The shareholders who brought the class action suit had argued that Musk’s statements about funding were false, and that they lost vast amounts of money due to stock fluctuations in the aftermath of Musk’s tweets. But while the judge in the case concluded that the tweets were "objectively false and reckless," the jury didn’t find that Musk had deliberately misled the public.

While the verdict ends the years-long saga of the “funding secured” tweets, the posts weren’t entirely without consequences for Musk. He settled with the Securities and Exchange Commission in 2018, and stepped down from his role as Tesla board chair as a condition of the settlement. Musk has long decried the SEC settlement and has said he was “forced to admit I lied to save Tesla’s life.”

In a statement to Bloomberg following the verdict, Musk's lawyer, Alex Spiro, said "the jury got it right." Musk also weighed in — naturally, via tweet — saying he was "deeply appreciative." 

Update 2/3 7:19 PM ET: Added Elon Musk's tweet about the verdict.

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics