Hustler Words – New legal filings, first reported by Reuters, reveal Tesla rejected a $60 million settlement offer months before a jury slammed the automaker with a staggering $242.5 million verdict over a fatal 2019 Autopilot crash. This revelation shines a harsh light on Tesla’s decision-making process and raises serious questions about its risk assessment strategy.
The May settlement proposal, disclosed in a filing requesting Tesla cover plaintiffs’ legal fees, offers a stark contrast to the hefty sum the company now faces. The Miami federal court jury found Tesla partially responsible for the crash, where a Tesla Model S using Autopilot failed to brake, resulting in the death of Neima Benavides Leon and severe injuries to Dillon Angulo. While the driver bore the majority of the blame (two-thirds), the jury assigned one-third of the responsibility to Tesla, leading to the massive financial penalty.
Tesla, in a statement to hustlerwords.com earlier this month, announced its intention to appeal, citing "substantial errors of law and irregularities at trial." However, the rejected settlement offer suggests a potential miscalculation of the legal risks involved. The company’s decision to forgo a significantly smaller payout now appears to be a costly gamble.
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hustlerwords.com reached out to the plaintiffs’ attorneys and Tesla for comment. While an outside PR firm representing Tesla declined to comment, directing us to the company’s press address, the lack of a dedicated communications team at Tesla further highlights the challenges in navigating such a high-profile legal battle.
The case, filed in 2021 (1:21-cv-21940-BB) in the U.S. District Court for the Southern District of Florida, serves as a cautionary tale for the autonomous vehicle industry. The significant financial repercussions underscore the critical need for thorough risk assessment and proactive legal strategies in the development and deployment of advanced driver-assistance systems. The high cost of litigation, even with a partial liability finding, underscores the potential financial consequences of failing to adequately address safety concerns.
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