— A Tesla battery lawsuit settlement has been reached after a Tesla Model S owner alleged his battery range was lost due to an update to prevent the battery from catching fire.
The Tesla owner who sued alleged the automaker released an over-the-air software update that reduced the maximum voltage the batteries could be charged. This caused a loss of range of the cars and allegedly caused the vehicles to lose resale values.
The initial Tesla battery class action lawsuit included Model S and Model X vehicles, but the proposed settlement includes only certain Model S cars.
According to the proposed battery lawsuit settlement, the customers include:
"All U.S. residents who, anytime during the period from May 15, 2019 through September 1, 2020, owned or leased a Tesla Model S vehicle that experienced a limitation of maximum battery voltage as the result of the software update issued by Tesla in May 2019."
California plaintiff David Rasmussen owns a 2014 Tesla Model S 85 that had about 137,000 miles on the odometer when he filed the class action lawsuit. The plaintiff says in the lawsuit the Model S and Model X software updates were sent so Tesla could avoid repairing or replacing the batteries.
"It is apparent that Tesla’s top priority is not the safety of its customers, but really, itself and its intent to avoid providing warranty battery replacements to rightful customers. Tesla cannot be exonerated from its greed and fraudulent intent, all of which have already harmed, continue to harm, and will continue harming innocent purchasers and consumers nationwide." - Tesla battery lawsuit
According to Tesla’s data, 1,743 Model S cars in the U.S. were subject to a 10% maximum voltage limitation caused by the May 2019 software update. A July 2019 update restored about 3% of the battery voltage and a third update released in March 2020 was to fully restore the voltage over time as the vehicles are driven.
Tesla’s data also show out of 1,722 Model S cars, 1,552 have had their maximum battery voltage fully restored and 79 have been restored to between 95.5% and 99%. Another 34 have been restored to between 93% and 95.5%. Out of the remaining cars, 57 had their batteries replaced, but data wasn't available for 21 Model S cars.
Attorneys for the plaintiff confirmed the voltage limitation was temporary, "with a 10% reduction lasting about 3 months, and a smaller 7% reduction lasting another 7 months before the corrective update was released in March 2020."
The plaintiff says Tesla should return the money paid for the vehicles and replace the batteries, but the proposed settlement doesn't offer either option.
Tesla Battery Lawsuit Settlement Agreement
According to the proposed settlement, Tesla will create a settlement fund of $1.5 million, and out of that $410,000 will go to the attorneys who sued, and $1,000 will go to the Tesla owner who filed the lawsuit.
This will leave about $625 for those who owned or leased a Tesla Model S over the relevant time period. The $625 payment will be prorated for those who owned or leased their cars for only part of the relevant period.
By agreeing to the settlement terms, a Tesla Model S owner is releasing "Tesla from any claims arising from or relating to the changes to maximum battery voltage caused by the software updates Tesla issued in May 2019, July 2019 and March 2020."
The Tesla battery lawsuit was filed in the U.S. District Court for the Northern District of California: Rasmussen, et al., v. Tesla, Inc.
The plaintiff is represented by Lieff Cabraser Heimann & Bernstein, LLP, and YK Law LLP.
