Tesla Inc., the electric vehicle company led by billionaire Elon Musk, turned down a $60 million settlement offer in a lawsuit stemming from a fatal 2019 crash involving a Model S equipped with Autopilot before a Miami jury awarded a staggering $243 million verdict this month.
The settlement proposal, disclosed by the plaintiffs’ lawyers in a Monday filing in federal court in Miami, Florida, came shortly after the case reached a critical stage. The filing also requests legal fees from Tesla, with the plaintiffs’ attorneys asserting that Florida law entitles them to fees accrued since May 30, the date when the settlement was initially offered. Tesla and its legal representatives did not immediately respond to requests for comment, and the plaintiffs’ attorneys also declined to comment further.
The trial centered on an April 2019 incident in which the Tesla Model S, operating with Autopilot driver-assistance software, struck a parked Chevrolet Tahoe. The victims, Naibel Benavides Leon and her boyfriend Dillon Angulo, were standing beside the vehicle at the time. Leon tragically lost her life, while Angulo suffered serious injuries.
The jury ultimately awarded the estate of Leon and Angulo a total of $329 million, including $129 million in compensatory damages and $200 million in punitive damages. Tesla was found liable for 33% of the compensatory damages, amounting to $42.6 million, and for all of the punitive damages. The driver of the Tesla, who was deemed 67% responsible for the compensatory damages, was not a defendant in the case.
Tesla has consistently denied wrongdoing, arguing that the verdict “only works to set back automotive safety and jeopardize Tesla’s and the entire industry’s efforts to develop and implement life-saving technology.” The company has confirmed that it plans to appeal the decision.
This case marks a significant moment for Tesla, as it represents the first trial addressing the wrongful death of a third party linked to Autopilot technology. While Tesla has faced other lawsuits related to its self-driving capabilities, those cases have either been settled or dismissed before reaching a trial.
The outcome highlights the increasing scrutiny surrounding autonomous and semi-autonomous vehicle technologies. Safety advocates and legal experts have emphasized that this verdict could set a precedent for future lawsuits involving advanced driver-assistance systems, potentially impacting both Tesla and the broader automotive industry as it navigates the challenges of deploying life-saving but unproven technology.
The rejection of the $60 million settlement offer underscores Tesla’s willingness to litigate high-profile cases even at significant financial risk, reflecting the company’s broader approach to legal challenges surrounding its Autopilot software. The verdict and its aftermath are likely to influence both regulatory scrutiny and public perception of self-driving technology in the United States.
Pump Radar
Stock Alerts