Key facts
- Appeals court ruled class action claims over Tesla's self-driving technology cannot proceed jointly.
- Individualized questions about what buyers saw before purchasing prevent class certification.
- The ruling is not on the merits of the false advertising allegations.
- US Chamber of Commerce supported Tesla, citing concerns over class action costs.
A US appeals court on Friday blocked customers from pursuing class action claims against Tesla Inc, alleging the electric vehicle maker misled them about its full self-driving technology. The San Francisco-based 9th US Circuit Court of Appeals ruled that individualized questions about what buyers saw before purchasing prevented the claims from proceeding as a class action. This decision overturns a lower court's order that had grouped thousands of California buyers together. The ruling is a temporary win for Tesla, which argued against the class certification. The underlying lawsuit, alleging false advertising regarding the vehicles' hardware capabilities for full self-driving, remains pending. Plaintiffs' lawyers expressed disagreement with the panel's interpretation of Tesla's marketing statements.
