Tesla, its CEO Elon Musk and other top company personnel were served with a securities class action lawsuit on Monday by shareholders who accused the defendants of downplaying the safety and regulatory risks of the EV maker’s Autopilot and Full Self-Driving (FSD) technologies.
According to a report by Reuters, the lawsuit was filed in the San Francisco federal court and is led by Thomas Lamontagne, a Tesla shareholder. The suit alleges that Tesla defrauded shareholders over four years with false and misleading statements relating to technologies that “created a serious risk of accident and injury.”
They said Tesla’s share price fell several times as the truth became known, pointing out investigations by the National Highway Traffic Safety Administration (NHTSA) and the Securities and Exchange Commission (SEC) probing into Musk’s Autopilot claims.
Most recently, the price of Tesla’s shares dropped 5.7% on February 16 after the NHTSA ordered the recall of nearly 363,000 Tesla vehicles equipped with the company’s FSD Beta software that could cause crashes when in operation.
“As a result of defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the company’s common stock, plaintiff and other class members have suffered significant losses and damages,” the complaint said.
The post Tesla and Elon Musk sued by shareholders – lawsuit claims Autopilot and Full Self-Driving tech overstated appeared first on Paul Tan's Automotive News.
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