Elon Musk and Tesla are facing two separate class-action lawsuits, one from California and the other from Maryland, over claims of misleading consumers about full self-driving capabilities in their vehicles. In addition to this, Musk is also under fire for his alleged role in efforts to defund the U.S. Agency for International Development (USAID).
Federal judges have certified these class actions, allowing the plaintiffs to pursue collective claims against Tesla and its CEO. The rulings mark a significant increase in Musk’s exposure to legal challenges.
In California, U.S. District Judge Rita F. Lin certified two classes of plaintiffs who claim that Tesla made false statements about the availability of full self-driving capabilities in their vehicles since late 2016. This ruling could lead to a broader investigation into Tesla’s marketing practices.
Meanwhile, in Maryland, U.S. District Judge Theodore D. Chuang certified a class action against Musk personally, alleging that he was involved in efforts to dismantle or defund USAID programs under the Trump administration. The judge’s decision allows plaintiffs to seek collective claims against Musk, potentially expanding his liability.
Tesla has not publicly commented on these rulings, and its lawyers are expected to argue for dismissal of the lawsuits at an upcoming conference. However, with both cases moving towards trial, it is clear that Musk’s exposure to legal challenges will continue to grow.
The implications of this news are significant, as it highlights the growing scrutiny of Musk’s business practices and his personal involvement in controversies. As one plaintiff noted, “They are performing surgery with a chainsaw instead of a scalpel, harming not just the people USAID serves but the majority of Americans who count on the stability of our government.”
Source: https://www.newsweek.com/judges-hand-elon-musk-double-legal-blow-usaid-tesla-2115518