A U.S. District Court judge, Georgia Alexakis, has partially dismissed a class-action lawsuit against Tesla (TSLA, Financial) regarding its electric vehicles' "phantom braking" issue. However, the judge allowed the plaintiffs to proceed with claims that Tesla deliberately concealed the problem from consumers.
The lawsuit, initially filed in 2023, targets Tesla's forward collision monitoring system. Plaintiffs allege that the system erroneously triggers collision warnings even when there is no safety risk, causing unexpected braking. Tesla sought to dismiss the entire lawsuit, denying any prior knowledge of the braking issue when selling a Model 3 to one of the plaintiffs in 2021.
The plaintiffs claim that due to false collision warnings, their insurance premiums increased. They argue that Tesla has been aware of these issues since 2015. Tesla's attorneys countered that the plaintiffs failed to provide specific communications indicating that Tesla concealed this information.
Judge Alexakis stated that if the plaintiffs wish to reinstate their insurance claims, they may submit an amended complaint. Meanwhile, the National Highway Traffic Safety Administration (NHTSA) has launched a preliminary investigation into 416,000 Model 3 and Y vehicles concerning unexpected braking, based on 354 complaints. As of now, there are no reports of accidents or injuries related to this issue, and the investigation has not been escalated.
