US appeals court blocks Tesla self-driving class action

A US appeals court has blocked a class action lawsuit that accused Tesla of misleading customers regarding the capabilities of its full self-driving technology. The 9th US Circuit Court of Appeals ruled that the claims could not proceed as a class action because there were too many individualized questions regarding what specific buyers saw before making their purchases.

The ruling prevents thousands of California buyers from pursuing their claims jointly in a single case. However, the decision does not address the merits of the underlying allegations of false advertising; the case remains pending. The plaintiffs argue that Tesla misrepresented hardware capabilities, leading customers to pay for software that does not function as advertised.

Tesla has denied the allegations. While a lower court judge previously ruled that many buyers were likely exposed to Tesla’s claims on its website, the appeals court panel determined that plaintiffs could not prove all class members were exposed to the allegedly false statements.