Tesla Inc. (NASDAQ:TSLA) led by CEO Elon Musk rejected a $60 million settlement offer before a Miami federal jury awarded $243 million in damages over a fatal 2019 Autopilot crash, according to court filings disclosed Monday.
Settlement Rejection Costly for EV Giant
The settlement proposal was made on May 30, according to plaintiffs’ lawyers filing for legal fees in Miami federal court, Reuters reported.
The case stems from an April 2019 crash in Key Largo, Florida, where a Tesla Model S equipped with Autopilot struck a parked Chevrolet Tahoe. Driver George McGee was looking down to retrieve his dropped phone when the vehicle failed to stop at an intersection.
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Jury Awards Massive Damages in Landmark Case
The jury awarded $129 million in compensatory damages plus $200 million in punitive damages to the estate of Naibel Benavides Leon, 22, who was killed, and her boyfriend Dillon Angulo, who suffered severe injuries.
Tesla was held liable for 33% of compensatory damages ($42.6 million) and all punitive damages ($200 million). McGee bore responsibility for 67% of compensatory damages but was not a defendant in the case, according to the report.
First Third-Party Autopilot Death Trial
This marks the first trial involving a third-party wrongful death related to Tesla’s Autopilot system, potentially setting a precedent for future autonomous vehicle litigation.
Tesla engineer Akshay Pathak testified the company failed to maintain Autopilot crash records until 2018, three years after launching the feature.
Tesla Plans Appeal Amid Mounting Legal Challenges
Tesla denied wrongdoing and announced plans to appeal, stating 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 faces additional legal pressure with California’s DMV threatening a 30-day sales ban over alleged false advertising regarding Autopilot capabilities. Tesla also lost a bid to dismiss a class-action lawsuit over misleading Full Self-Driving claims.
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