Tesla Motors (TSLA.US) Reaches Confidential Settlement Agreements for 2019 California Autopilot Fatal Crashes

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According to court documents, Tesla Motors (TSLA.US) has reached confidential agreements to settle lawsuits related to two fatal crashes in California in 2019 involving the company's Autopilot advanced driver assistance software. These settlement agreements were reached weeks after a Florida jury ordered Tesla Motors to pay $243 million in compensatory and punitive damages to victims of a fatal crash involving a 2019 Model S equipped with Autopilot. Tesla Motors has hired three prominent new attorneys and is requesting that the judge rule the verdict legally unreasonable and dismiss the case, or order a new trial. The electric vehicle manufacturer has previously settled several other cases involving its vehicles and autonomous driving technology. However, documents from last month showed the company rejected a $60 million settlement proposal for the Florida lawsuit. The Florida verdict and the two California settlement agreements are significant because Tesla Motors' $1.4 trillion valuation largely depends on CEO Elon Musk's plans to rapidly expand its autonomous taxi services and the underlying technology. One lawsuit, with a settlement notice filed on Tuesday, involved the death of a 15-year-old teenager. He was traveling with his father in a vehicle in Alameda County, California, when they were rear-ended by a Tesla Motors Model 3 operating in Autopilot mode, causing their vehicle to roll over and crash into the center median. The teenager died from injuries sustained in the collision. The other case involved a December 2019 fatality in Gardena. Two people were traveling through an intersection in a Honda Civic when a Tesla Motors Model S equipped with Autopilot, traveling at high speed, failed to stop at a red light and collided with their vehicle. According to a notice filed last week, the Gardena case settlement applies only to Tesla Motors, while the trial against the Model S driver and some other defendants will continue. Neither notice disclosed the terms of the agreements. They stated that the dismissal of these lawsuits was conditional upon "completion of tasks according to specified terms." Both cases had trials scheduled to begin next month—one in Alameda County Superior Court and another in Los Angeles County Superior Court. According to court orders, an Alameda County Superior Court judge cancelled the scheduled trial on Tuesday, while Tesla Motors and plaintiffs agreed to withdraw their claims in the Los Angeles trial.

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