Jury orders Tesla to pay $329M in Autopilot crash case, opening it up to other costly lawsuits
The federal jury held that Tesla bore significant responsibility because its technology failed and that not all the blame can be put on a reckless driver, even one who admitted he was distracted by his cell phone before hitting a young couple out gazing at the stars. The decision comes as Musk seeks to convince Americans his cars are safe enough to drive on their own as he plans to roll out a driverless taxi service in several cities in the coming months.
The decision ends a four-year long case remarkable not just in its outcome but that it even made it to trial. Many similar cases against Tesla have been dismissed and, when that didn't happen, settled by the company to avoid the spotlight of a trial.
'This will open the floodgates,' said Miguel Custodio, a car crash lawyer not involved in the Tesla case. 'It will embolden a lot of people to come to court.'
The case also included startling charges by lawyers for the family of the deceased, 22-year-old, Naibel Benavides Leon, and for her injured boyfriend, Dillon Angulo. They claimed Tesla either hid or lost key evidence, including data and video recorded seconds before the accident.
Tesla has previously faced criticism that it is slow to cough up crucial data by relatives of other victims in Tesla crashes, accusations that the car company has denied. In this case, the plaintiffs showed Tesla had the evidence all along, despite its repeated denials, by hiring a forensic data expert who dug it up. Tesla said it made a mistake after being shown the evidence and honestly hadn't thought it was there.
It's not clear how much of a hit to Tesla's reputation for safety the verdict in the Miami case will make. Tesla has vastly improved its technology since the crash on a dark, rural road in Key Largo, Florida, in 2019.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Chicago Tribune
27 minutes ago
- Chicago Tribune
The vast majority of US adults are stressed about grocery costs, an AP-NORC poll finds
NEW YORK — The vast majority of U.S. adults are at least somewhat stressed about the cost of groceries, a new poll finds, as prices continue to rise and concerns about the impact of President Donald Trump's tariffs remain widespread. About half of all Americans say the cost of groceries is a 'major' source of stress in their life right now, while 33% say it's a 'minor' source of stress, according to the poll from The Associated Press-NORC Center for Public Affairs Research. Only 14% say it's not a source of stress, underscoring the pervasive anxiety most Americans continue to feel about the cost of everyday essentials. Other financial stressors — like the cost of housing or the amount of money in their bank accounts — are also broadly felt, but they weigh more heavily on younger Americans, who are less likely than older adults to have significant savings or own property. The survey also found that about 4 in 10 Americans under age 45 say they've used what are known as 'buy now, pay later' services when spending on entertainment or restaurant meals or when paying for essentials like groceries or medical care. Adam Bush, 19, based in Portland, New York, is one of those younger Americans who has used pay-later services for things like groceries or entertainment. Bush works as a welder, fabricating parts for trucks for Toyota, and makes under $50,000 per year. 'I just keep watching the prices go up, so I'm looking for the cheapest possible stuff,' he said. 'Hot pockets and TV dinners.' Groceries are one of the most far-reaching financial stressors, affecting the young and old alike, the poll finds. While Americans over age 60 are less likely than younger people to feel major financial anxiety about housing, their savings, child care, or credit card debt, they are just as worried about the cost of groceries. Esther Bland, 78, who lives in Buckley, Washington, said groceries are a 'minor' source of stress — but only because her local food banks fill the gap. Bland relies on her Social Security and disability payments each month to cover her rent and other expenses — such as veterinary care for her dogs — in retirement, after decades working in an office processing product orders. 'I have no savings,' she said. 'I'm not sure what's going on politically when it comes to the food banks, but if I lost that, groceries would absolutely be a major source of stress.' Bland's monthly income mainly goes toward her electric, water and cable bills, she said, as well as care of her dogs and other household needs. 'Soap, paper towels, toilet paper. I buy gas at Costco, but we haven't seen $3 a gallon here in a long time,' she said. 'I stay home a lot. I only put about 50 miles on my car a week.' According to the poll, 64% of the lowest-income Americans — those who have a household income of less than $30,000 a year — say the cost of groceries is a 'major' stressor. That's compared with about 4 in 10 Americans who have a household income of $100,000 or more. But even within that higher-income group, only about 2 in 10 say grocery costs aren't a worry at all. Housing is another substantial source of worry for U.S. adults — along with their savings, their income and the cost of health care. About half of U.S. adults say housing is a 'major' source of stress, according to the poll, while about 4 in 10 say that about the amount of money they get paid, the amount of money they have saved and the cost of health care. About 3 in 10 say credit card debt is a 'major' source of stress, while about 2 in 10 say that about the cost of child care and student debt. But some groups are feeling much more anxiety about their finances than others. Women, for instance, are more likely than men to report high levels of stress about their income, savings, the cost of groceries and the cost of health care. Hispanic adults are also particularly concerned about housing costs and both credit card and student debt. About two-thirds of Hispanic adults say the cost of housing is a 'major' source of stress, compared with about half of Black adults and about 4 in 10 white adults. Some people are making changes to their lifestyle as a result of high costs. Shandal LeSure, 43, who works as a receptionist for a rehabilitation hospital in Chattanooga, Tennessee, and makes between $85,000 and $100,000 a year, said she's started shopping for groceries at less expensive stores. 'It's an adjustment,' she said. 'Sometimes the quality isn't as good.' As they stretch limited budgets, about 3 in 10 U.S. adults overall say they've used 'buy now, pay later' services such as Afterpay or Klarna to purchase groceries, entertainment, restaurant meals or meal delivery, or medical or dental care, according to the poll. Bland, the Washington state retiree, said she's paid for pet surgery with a pay-later plan. Younger Americans are much likelier than older people to have used pay-later plans for entertainment, groceries or restaurant meals, but there's no age gap on medical care. Black and Hispanic people are also especially likely to adopt the plans. An increasing share of 'buy now, pay later' customers are having trouble repaying their loans, according to recent disclosures from the lenders. The loans are marketed as a safer alternative to traditional credit cards, but there are risks, including a lack of federal oversight. Some consumer watchdogs also say the plans lead consumers to overextend themselves financially. LeSure said she's used pay-later services for things like new clothes, while she balances debt payments for a car loan, student loans and medical bills. She's also turned to them to cover hotel costs after being evicted. 'That's been able to help me stretch my dollar,' she said.
Business Wire
27 minutes ago
- Business Wire
EdgeCo Holdings Completes Acquisition of Axios Advisory Group, Ltd. to Join Its AmericanTCS Business Unit
PITTSBURGH--(BUSINESS WIRE)--EdgeCo Holdings LP ('EdgeCo'), a leading provider of best-in-class solutions for financial intermediaries and their clients, announced today that it has completed the acquisition of Axios Advisory Group, Ltd. to become part of its AmericanTCS Holdings, LLC (AmericanTCS) business unit. The transaction includes acquiring American Pension Benefit's (APB) retirement plan administration and recordkeeping services and the investment advisory services of Axios Wealth Management. The firm's operations and offerings will be integrated into the various AmericanTCS entities. Encompassing all of the trust custody and retirement operations EdgeCo has acquired since 2018, AmericanTCS is composed of American Trust Retirement, American Trust Wealth, American Trust Custody, AmericanTCS Fiduciary Services and American Technology Automation. The addition of Axios Advisory Group aligns with our simple goal of making sure our business partners' time is best spent in front of the client creating excellent outcomes, not dealing with operational challenges. We have had a long-standing relationship Share The transaction reflects a continued commitment by EdgeCo and its subsidiaries to provide retirement solutions to the small- and mid-sized retirement plan market and the advisors and intermediaries that serve them. The agreement with Axios Advisory Group represents the ninth transaction by EdgeCo in the retirement space, with additional acquisitions planned as part of the growth strategy going forward. Headquartered in Pittsburgh, PA, Axios Advisory Group provides services to retirement plans and wealth clients. APB services retirement plan advisors, institutions, plan sponsors and plan participants. Kevin Buckley, Principal of APB Retirement, explained the reason for entering into this agreement with EdgeCo, 'The EdgeCo group of companies understand what's required to support the needs of the retirement plan and its participants. We're thrilled to join forces with a company that shares our vision and values.' Axios Wealth Management provides investment advisory services to corporate and individual clients. Mero Capo, Principal of Axios Wealth Management, added, 'We are confident this agreement will allow us to expand our reach and deliver even greater value to our clients.' 'Our mission at AmericanTCS is to help create financial security for all Americans by bringing together industry-leading technology, investment solutions and, most importantly, people with deep experience in the retirement industry,' explained Tim Friday, CEO of AT Retirement Services and American Trust Custody. He continued, 'The addition of Axios Advisory Group aligns with our simple goal of making sure our business partners' time is best spent in front of the client creating excellent outcomes, not dealing with operational challenges. We have had a long-standing relationship with Axios, so we know the entire team and have such respect for them. We are so excited to have them join AmericanTCS.' About EdgeCo Holdings Through its AmericanTCS and NewEdge Capital Group divisions, EdgeCo Holdings is a premier provider of best-in-class, technology-enabled solutions for financial intermediaries and their clients. For over four decades, EdgeCo companies have provided a suite of technology and support services, including full-service retirement plan administration, brokerage, advisory, and trust and custody solutions to a diverse national client base of financial intermediaries. This client base includes registered representatives, investment advisors and other financial intermediaries, including retirement plan recordkeepers, TPAs, bank trust departments, broker dealers and insurance companies. EdgeCo Holdings currently services over $650 billion in client assets under custody or administration and more than 10,000 financial advisors and 420 financial institutions.
The Verge
28 minutes ago
- The Verge
Tesla proposes giving Elon Musk $29 billion so he stays CEO
Tesla approved a restricted stock award of 96 million shares, worth about $29 billion, to 'incentivize' the controversial billionaire to remain at the head of the company during a protracted legal battle over his original pay package. Last year, a Delaware court voided Musk's pay package, valued at more than $50 billion, arguing that the deal was flawed and unfair to shareholders and that Musk held undue influence over its composition. Shareholders had voted twice to approve the hefty compensation, but the judge still upheld her ruling blocking it. Tesla has appealed the decision to the Delaware Supreme Court. Now, the company is asking shareholders to approve this new award, arguing that Tesla is on the cusp of becoming a leader in AI and robotics, requiring Musk's steady hand on the helm. To be sure, Tesla's position is shakier than ever. Musk's support for President Donald Trump and his work at the Department of Government Efficiency to fire tens of thousands of federal workers and cancel humanitarian aide programs has spawned a nationwide protest movement and a steep drop in sales. Tesla's stock has shed more than 20 percent of its value so far this year. Still, Tesla's board sees Musk's continued involvement as essential to the company's future. Earlier this year, Tesla's board created a special committee compromised of board chair Robyn Denholm and board member Kathleen Wilson-Thompson to consider new ways to compensate Musk, who the board claims 'has not received meaningful compensation for eight years.' 'While we recognize that Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging … we are confident that this award will incentivize Elon to remain at Tesla and focus his unmatched leadership abilities on further creating shareholder value for Tesla shareholders and attracting and retaining talent at Tesla,' Denholm and Wilson-Thompson wrote in a letter to shareholders. The board noted that if the Delaware courts fully reinstate Musk's 2018 pay package, the new interim grant would be forfeited or offset so there is 'no double dip.' In accepting the new stock, Musk would agree to serve as head of Tesla until 2027. Shareholders will vote on the new deal at their annual meeting, which is scheduled for November 6th. After years of exponential growth, the sudden reversal in Tesla's fortune has left many investors and supporters with whiplash. As Musk slid deeper into politics, investors have urged him to stay focused on Tesla and its costly — and questionable — project to build more self-driving cars and humanoid robots. The company rolled out its first robotaxi service in Austin, Texas, last month — although the service fell short of Musk's earlier predictions. The company's only new product since 2020, the Cybertruck, has widely been considered a flop. And competition from legacy automakers, especially those in China, has been sapping Tesla's resources. Musk is currently Tesla's largest shareholder, with a 13 percent stake in the company. But the CEO has said he wants more control over the company in order to have more sway over its mission — which this plans aims to produce. 'That is a major concern for me, as I've mentioned in the past, and I hope that is addressed at the upcoming shareholders meeting,' Musk said in a recent earnings call, in response to a question about his voting stake. 'I want to find that I've got so little control that I can easily be ousted by activist shareholders after having built this army of humanoid robots … I've mentioned before, I think my control of Tesla should be enough to ensure that it goes in a good direction, but not so much control that I can't be thrown out if I go crazy.'Posts from this author will be added to your daily email digest and your homepage feed. See All by Andrew J. Hawkins Posts from this topic will be added to your daily email digest and your homepage feed. See All Business Posts from this topic will be added to your daily email digest and your homepage feed. See All Electric Cars Posts from this topic will be added to your daily email digest and your homepage feed. See All Elon Musk Posts from this topic will be added to your daily email digest and your homepage feed. See All News Posts from this topic will be added to your daily email digest and your homepage feed. See All Tech Posts from this topic will be added to your daily email digest and your homepage feed. See All Tesla Posts from this topic will be added to your daily email digest and your homepage feed. See All Transportation
