Opinion

Wang v. Tesla, Inc.

Court
District Court, E.D. New York
Filed
Jul 16, 2021
Cited by
0 cases
Authority
More cited than 26.6%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF NEW YORK

JING WANG and WAI-LEUNG CHAN,

MEMORANDUM & ORDER

Plaintiffs, 20-CV-3040 (NGG) (SJB)

-against-

TESLA, INC.,

Defendant.

NICHOLAS G. GARAUFIS, United States District Judge.

Plaintiff Wai-Leung Chan was involved in a car accident while

driving a vehicle he purchased from Defendant Tesla, Inc.

(“Tesla”) under the name of his spouse, Plaintiff Jing Wang.

Plaintiffs brought this action for breach of express and implied

warranties, failure to warn, deceptive and misleading business

practices and false advertising, common law fraud, and negligent

misrepresentation against Tesla. (Am. Compl. (Dkt. 18).) Before

the court is Defendant’s Motion to Dismiss Plaintiffs’ fraud claim

and Plaintiffs’ prayer for punitive and exemplary damages pursu-

ant to Fed. R. Civ. P. 12(b)(6), and Defendant’s Motion to Strike

several paragraphs of the Amended Complaint pursuant to Fed.

R. Civ. P. 12(f). (Tesla Mot. to Dismiss (“Tesla Mot.”) (Dkt. 24-

1); Pls.’ Mem. in Opp. to Def.’s Mot. to Dismiss (“Opp.”) (Dkt. 24-

3); Tesla Reply to Opp. (“Tesla Reply to Opp.”) (Dkt. 24-4).)

For the reasons set forth herein, Defendant’s Motion for Partial

Dismissal and Motion to Strike is granted in part and denied in

part. The court grants dismissal of Plaintiffs’ fraud claim, but de-

nies Defendant’s motion to dismiss Plaintiffs’ prayer for punitive

and exemplary damages and Defendant’s motion to strike por-

tions of Plaintiffs’ Amended Complaint.

I. BACKGROUND

In or around 2015, Plaintiff Chan became interested in purchas-

ing a Tesla vehicle for his daily commutes through Long Island

traffic. (Am. Compl. ¶¶ 23-24.) He was especially intrigued by

Tesla’s Autopilot feature, which, according to Tesla, is designed

to help drivers navigate “the burdensome parts of driving.” (Id.

¶¶ 9, 24.) Tesla vehicles equipped with Autopilot technology as-

sist drivers in a number of ways: the cars can steer, accelerate,

and brake automatically; they can match their speed to surround-

ing traffic; they are able to accelerate and decelerate to maintain

a specified distance behind the nearest vehicle; they can change

lanes on the highway; and they can detect nearby cars to prevent

accidents. (Id. ¶ 7.) Tesla touts one of its vehicles equipped with

Autopilot, the Model X, as “the safest, quickest, and most capable

sport utility vehicle in history” and “the safest SUV ever.” (Id. ¶

6.)

Prior to his purchase of a Tesla vehicle, Plaintiff Chan states that

he visited Tesla’s website almost weekly to learn about Tesla ve-

hicles’ capabilities. (Id. ¶ 23.) Based on his research on the

company’s website, Chan believed that a Tesla vehicle would be

uniquely suited to his transportation needs. (Id. ¶ 28.) Plaintiff

Chan visited showrooms in Syosset, New York and Manhasset,

New York to test drive the Model S and Model X vehicles, respec-

tively. (Id. ¶¶ 25-30.) During Plaintiff’s visit to the Manhasset

showroom, an agent assured him that the Autopilot feature

would be well-suited to his commutes and that “he could take

the Tesla into the HOV lane . . . and then close his eyes and ‘re-

lax.’” (Id. ¶ 29).

Relying on what he learned from Tesla’s website and from his

showroom visits, Chan purchased a Model X, which he claimed

in Tesla’s Brooklyn, New York showroom in September 2016. (Id.

¶¶ 32-33.) Plaintiffs allege that neither Tesla nor its representa-

tives ever warned Plaintiffs about the limitations of Model X and

the Autopilot feature or provided proper instructions on operat-

ing Model X and the Autopilot feature, either through Tesla’s

website or during Plaintiff Chan’s visits to Tesla’s showrooms. (Id.

¶¶ 33-35.)

On December 13, 2017, Plaintiff Chan got into an accident while

driving the Model X on the Long Island Expressway through

dense traffic. (Id. ¶¶ 37-38.) Plaintiffs contend that as a white

Audi merged in between Chan’s car and a tractor-trailer in front

of him, the Autopilot feature failed to react, warn Chan of an im-

pending collision, or operate its “Automatic Emergency

Breaking” function. (Id. ¶¶ 40-41.) With just one second to react,

Plaintiff Chan steered to the left, attempting to avoid a collision,

and he instead collided with two other cars. (Id. ¶ 42.) The Au-

topilot feature did not recognize this impending collision, either,

and it again failed to engage its “’Automatic Emergency Break-

ing’” function. (Id.) Plaintiff Chan claims he operated the vehicle

in a reasonable manner and was alert the entire time. (Id. ¶¶ 39,

44.) The collision caused severe damage to Plaintiffs’ Model X,

which was deemed a total loss, and damage to two other vehi-

cles; there is no allegation that it caused bodily injury. (Id. ¶ 43.)

II. LEGAL STANDARD

A. Motion to Dismiss Pursuant to Fed. R. Civ. P. 12(b)(6)

To survive a Rule 12(b)(6) motion, “a complaint must contain

sufficient factual matter, accepted as true, to ‘state a claim to re-

lief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662,

678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544,

570 (2007)).1 A complaint must contain facts that do more than

1 When quoting cases, and unless otherwise noted, all citations and quota-

tion marks are omitted, and all alterations are adopted.

present a “sheer possibility that a defendant has acted unlaw-

fully.” Iqbal, 556 U.S. at 678. To decide Defendants’ motions to

dismiss, the court “will accept all factual allegations in the [c]om-

plaint as true and draw all reasonable inferences in [Plaintiffs’]

favor.” L-7 Designs, Inc. v. Old Navy, LLC, 647 F.3d 419, 429 (2d

Cir. 2011). However, the court will “identify[] pleadings that, be-

cause they are no more than conclusions, are not entitled to the

assumption of truth.” Iqbal, 556 U.S. at 679. The court must then

evaluate the “well-pleaded factual allegations” and “determine

whether they plausibly give rise to an entitlement to relief.” Id.

This plausibility analysis “does not impose a probability require-

ment at the pleading stage,” but requires the complaint to

provide “enough fact to raise a reasonable expectation that dis-

covery will reveal evidence of illegality.” Arista Records, LLC v.

Doe 3, 604 F.3d 110, 120 (2d Cir. 2010) (quoting Twombly, 550

U.S. at 556).

B. Motion to Strike Pursuant to Fed. R. Civ. P. 12(f)

Motions to strike “are not favored and will not be granted unless

. . . the allegations in question can have no possible bearing on

the subject matter of the litigation.” Lynch v. Southampton Animal

Shelter Found. Inc., 278 F.R.D. 55, 63 (E.D.N.Y. 2011). “Rule

12(f) motion[s] to strike matter as impertinent or immaterial,

will be denied, unless it can be shown that no evidence in support

of the allegation would be admissible.” Id. By the same token,

matters should be struck due to impertinence only where “the

allegation bears no possible relation whatsoever to the subject

matter of the litigation.” AdvanceMe, Inc. v. Lenders Int’l, No. 11-

CV-3624(VB), 2011 WL 6425488, at *2 (S.D.N.Y. Dec. 19,

2011). To prevail on a Fed. R. Civ. P. 12(f) motion to strike, the

movant must establish that: “(1) no evidence in support of the

allegations would be admissible; (2) the allegations have no

bearing on the relevant issues; and (3) permitting the allegations

to stand would result in prejudice to the movant.” Lynch, 278

F.R.D. at 63 (citing Roe v. City of New York, 151 F. Supp. 2d 495,

510 (S.D.N.Y. 2001)).2

III. DISCUSSION

Tesla moves to dismiss on two grounds. First, Tesla argues that

Plaintiffs fail to state a claim for fraud under Fed. R. Civ. P.

12(b)(6). (Tesla Mot. at 5.) Second, Tesla argues that Plaintiffs’

Amended Complaint does not state a cognizable claim that per-

mits punitive or exemplary damages. (Id. at 9.) Tesla also moves

to strike several paragraphs from Plaintiffs’ Amended Complaint

as immaterial and impertinent to Plaintiffs’ claims. (Id. at 10.)

A. Motion to Dismiss Plaintiffs’ Fraud Claim

In the sixth cause of action raised in their Amended Complaint,

Plaintiffs allege that Tesla has “intentionally made false represen-

tations of material fact regarding its vehicles, including that its

Autopilot function is safe and ready to be used in common traffic

situations and specifically in heavy highway traffic.” (Am. Compl.

¶ 97.) They argue that the statements Tesla has made directly to

Plaintiffs and to the public, through Tesla’s website and show-

room agents, “were likely to deceive a reasonable consumer and

did deceive Plaintiffs into purchasing a Tesla vehicle.” (Id. ¶ 99.)

Furthermore, according to Plaintiffs, these misrepresentations

about the Model X and its ultimate failure to perform as repre-

sented are the direct and proximate cause of Chan’s accident. (Id.

¶ 104.)

To state a claim for fraud, Plaintiffs must establish “ a misrepre-

sentation or a material omission of fact which was false and

known to be false by defendant, made for the purpose of induc-

ing the other party to rely upon it, justifiable reliance of the other

2 Because the relevant claims in this action arise under state law, the court

applies New York substantive law in deciding the motion to strike.

party on the misrepresentation or material omission, and injury.”

Lama Holding Co. v. Smith Barney Inc., 668 N.E. 2d 1370, 1373

(N.Y. 1996). Additionally, Fed. R. Civ. P. 9(b) requires that, “[i]n

alleging fraud . . . , a party must state with particularity the cir-

cumstances constituting fraud[.]” In order to satisfy this

particularity standard, a complaint alleging fraud must ordinar-

ily: “(1) specify the statements that the plaintiff contends were

fraudulent, (2) identify the speaker, (3) state where and when

the statements were made, and (4) explain why the statements

were fraudulent.” United States ex rel. Ladas v. Exelis, Inc., 824 F.

3d 16, 25 (2d Cir. 2016). Fed. R. Civ. P. 9(b) “is designed to pro-

vide a defendant with fair notice of a plaintiff’s claim, to

safeguard a defendant’s reputation from improvident charges of

wrongdoing, and to protect a defendant against the institution of

a strike suit.” O’Brien v. Nat’l Prop. Analysts Partners, 936 F.2d

674, 676 (2d Cir. 1991).

Tesla argues that Plaintiffs have failed to state a claim for fraud,

as they have not pleaded all the requisite elements of a common

law fraud claim. Tesla also argues that Plaintiffs have made only

vague allegations that fail to satisfy the particularity standard of

Federal Rule of Civil Procedure 9(b). Moreover, Tesla contends

that even if Plaintiffs did make out a claim for fraud and meet

the particularity standard, their claim still fails because the al-

leged fraud is predicated on an omission and there is no fiduciary

relationship between the two parties.

Plaintiffs allege that they justifiably relied on misrepresentations

about the Autopilot technology made on Tesla’s website. (Am.

Compl ¶ 99.) Their Amended Complaint cites specific statements

touting the safety and efficacy of the Model X and Autopilot Tech-

nology that appeared on Tesla’s website at the time Plaintiffs

drafted their complaint, including that the Model X is the “safest,

quickest, and most capable sport utility vehicle in history” and

“the safest SUV ever” and that the Autopilot feature assumes “the

burdensome parts of driving.” (Id. ¶¶ 6, 8.) However, the

Amended Complaint does not allege that Plaintiffs viewed and

relied upon these specific statements on Tesla’s website in 2015

or 2016, when they made the decision to purchase a Model X.

Indeed, it is not clear from the complaint what representations

on Tesla’s website Chan read and allegedly relied upon prior to

Plaintiffs’ purchase of the Model X. Because Plaintiffs do not iden-

tify the specific representations on Tesla’s website that they relied

upon, their fraud allegations regarding Tesla’s website fall short

of Rule 9(b)’s particularity requirement.3

Plaintiffs also allege that they were misled by statements made

by Tesla representatives in the Manhasset and Syosset show-

rooms, including “routine[] misrepresent[ations] and

overstate[ments] [of] the capabilities of Autopilot and the re-

quired operator involvement,” such as representations that the

Model X was uniquely suited to Plaintiff Chan’s needs, that it

would perform well in traffic, and that Chan could close his eyes

and relax after putting the car in Autopilot. (Am. Compl. ¶¶ 17,

26-27, 29-31.) Plaintiffs argue that their allegations are suffi-

ciently specific to support a fraud claim, as they have identified

the fraudulent statements on which they base their claim, identi-

fied the speakers, designated the time period and place, and

described the nature of the statements. (Opp. at 6.) However,

aside from the alleged statement by a Manhasset showroom

agent that Chan could “close his eyes and relax” when utilizing

3 Plaintiffs state that their fraud allegations are adequate because pleading

on “information and belief” is allowed in certain instances. (Opp. at 6.)

However, where pleading is allowed on information and belief, “a com-

plaint must adduce specific facts supporting a strong inference of fraud or

it will not satisfy even a relaxed pleading standard.” Wexner v. First Man-

hattan Co., 902 F.2d 169, 172 (2d. Cir. 1990). Here, Plaintiffs’ Amended

Complaint suggests in vague terms that Plaintiffs were misled by their re-

view of Tesla’s website. They have not alleged with any particularity, either

with knowledge or upon information and belief, what representations they

relied upon.

the Autopilot technology, Plaintiffs do not allege specific misrep-

resentations that were made during Chan’s visits to the

showrooms. That statement, by itself, does not meet the elements

of a fraud claim. Plaintiffs have failed to present facts that “give

rise to a strong inference of fraudulent intent.” See S.Q.K.F.C., Inc.

v. Bell Atlantic TriCon Leasing Corp., 84 F.3d 629, 634 (2d Cir.

1996). To demonstrate a strong inference of fraudulent intent,

plaintiffs must allege “facts indicating that the defendant[] had

both motive and opportunity to commit fraud or facts that

amount to strong circumstantial evidence of conscious misbehav-

ior or recklessness.” Carmona v. Spanish Broad. Sys., Inc., No. 08-

cv-4475 (LAK), 2009 WL 890054, at *5 (S.D.N.Y. Mar. 30,

2009). The facts alleged in Plaintiffs’ Amended Complaint fail to

give rise to an inference of that nature.

Plaintiffs also allege that Tesla committed fraud by failing to ad-

equately disclose the defects or limitations of the Autopilot

technology. To allege fraud based on a failure to disclose under

New York law, one party must have “information that the other

party is entitled to know because of a fiduciary or other similar

relation of trust and confidence between them.” United States. v.

Szur, 289 F.3d 200, 211 (2d Cir. 2002). A fiduciary relationship

“may exist where one party reposes confidence in another and

reasonably relies on the other’s superior expertise or knowledge,

but an arms-length business relationship does not give rise to a

fiduciary obligation.” In re Refco Sec. Litig., 759 F. Supp. 2d 301,

323 (S.D.N.Y. 2010). “When parties deal at arms length in a com-

mercial transaction, no relation of confidence or trust sufficient

to find the existence of a fiduciary relationship will arise absent

extraordinary circumstances.” In re Mid-Island Hosp., Inc., 276

F.3d 123, 130 (2d Cir. 2002).

“However, there may be a relationship of trust and confidence

sufficient to give rise to a duty to disclose under the ‘special facts

doctrine.’” Travelers Indem. Co. of Illinois v. CDL Hotels USA, Inc.,

322 F. Supp. 2d 482, 499 (S.D.N.Y. 2004). “‘Under [the special

facts doctrine], a duty to disclose arises where one party’s supe-

rior knowledge of essential facts renders a transaction without

disclosure inherently unfair.’” Woods v. Maytag Co., 2010 WL

4314313, at *10 (E.D.N.Y. Nov. 2, 2010) (quoting P.T. Bank

Cent. Asia v. ABN AMRO Bank N.V., 301 A.D.2d 373, 378 (1st

Dep’t 2003)). To state a claim under the special facts doctrine, a

plaintiff must allege that: “(1) one party has superior knowledge

of certain information; (2) that information is not readily availa-

ble to the other party; and (3) the first party knows that the

second party is acting on the basis of mistaken knowledge.”

Banque Arabe et Internationale D’Investissement v. Maryland Nat.

Bank, 57 F.3d 146, 155 (2d. Cir. 1995).

Because Plaintiffs and Tesla were engaged in an arm’s-length

transaction, Tesla had an affirmative duty to disclose only if the

special facts doctrine applied. Plaintiffs argue that Tesla’s supe-

rior knowledge of essential facts regarding the Autopilot

technology’s limitations and defects established a duty to dis-

close. (Opp. at 8.) Plaintiffs, however, have not alleged with any

specificity what alleged defects were concealed from them, nor

have they adequately alleged that information regarding the lim-

itations of the technology was unavailable to them via Tesla’s

website, the Model X owner’s manual, or other publicly available

sources. Accordingly, the facts alleged do not give rise to a claim

that Tesla committed fraud by failing to affirmatively disclose

“special facts” that were known to Tesla and unknowable by

Plaintiffs.

B. Motion to Dismiss Prayer for Punitive and Exemplary

Damages

Under New York law, a plaintiff may recover an award for puni-

tive damages on a tort claim where the defendant’s actions rise

to the level of “gross, wanton, or willful fraud or other morally

culpable conduct.” Action S.A. v. Marc Rich & Co., Inc., 951 F.2d

504, 509 (2d Cir. 1991). Notably, the trend among courts apply-

ing New York law seems to be to deny attempts to dismiss prayers

for punitive damages at the motion to dismiss stage because it is

“not even clear that there is a requirement that a complaint seek-

ing punitive damages must plead specific facts that would

support an award of such damages.” Amusement Indus., Inc. v.

Stern, 693 F. Supp. 2d 301, 318 n.5 (S.D.N.Y. 2010). “A motion

to dismiss is addressed to a ‘claim’ – not to a form of damages.”

Id. Additionally, “there is no separate cause of action in New York

for punitive damages.” Martin v. Dickson, 100 F. App’x 14, 16 (2d

Cir. 2004). “[W]hether there is sufficiently egregious conduct to

support an award of punitive damages is an evidentiary matter

that cannot be decided on a motion to dismiss.” New York Is-

landers Hockey Club, LLP v. Comerica Bank—Texas, 71 F. Supp.

2d 108, 120-21 (E.D.N.Y. 1999). As such, “[b]ecause punitive

damages are a form of damages, not an independent cause of

action, a motion to dismiss a prayer for relief in the form of pu-

nitive damages is procedurally premature.” Hunter v. Palisades

Acquisition XVI, LLC, 16 Civ. 8779 (ER), 2017 WL 5513636, at *9

(S.D.N.Y. Nov. 16, 2017).

In the instant case, Plaintiffs’ Complaint demands punitive and

exemplary damages on underlying causes of action. See Amuse-

ment Indus., Inc., 693 F. Supp. at 318 n.5 (S.D.N.Y. 2010).

Accordingly, the court denies Tesla’s motion to dismiss Plaintiffs’

prayer for punitive damages as procedurally premature. See

Hunter, 2017 WL 5513636, at *9.

C. Motion to Strike Portions of Plaintiffs’ First Amended

Complaint

Tesla also moves to strike six paragraphs of Plaintiffs’ First

Amended Complaint, which allege facts concerning the safety of

Tesla’s vehicles, including a 2019 car accident involving a differ-

ent Tesla model and a 2020 report by the National

Transportation Safety Board. Specifically, Plaintiffs allege in the

relevant paragraphs that:

14. Tesla tries to distance itself from potential lia-

bilities by initially referring to the Model X

operating software as being in a “beta-testing

phase.” After Germany’s Federal Office for Motor

Vehicles refused to approve Autopilot for use on

German roads, Tesla explained that the word

“beta” is not used in the standard sense of the

word but was used to make sure Tesla drivers do

not get too comfortable with its autopilot system.

15. Rather than providing transparent disclosures,

Tesla tells its customers and regulators that when

Autopilot fails, the driver is the fallback option to

resume control of the vehicle. This fallback plan is

unreliable and unsafe. Not only has Tesla been

warned by the NTSB that drivers of their automo-

biles may become overly reliant on the Autopilot

technology, but Tesla also knows or should know,

based on scientific and engineering publications,

that drivers have a limited ability to execute a

“take over response” when Autopilot does not

measure up. Indeed, the “takeover response” time

for humans varies greatly depending on the cir-

cumstances: the type of stimuli, the type of control

necessary, and the driving situation. Even the most

attentive drivers need a certain amount of time to

perform a takeover response. The malfunctioning

and defective Autopilot system does not allow for

that margin of time, nor does it provide a sufficient

warning to enable the driver to properly respond.

In other words, Tesla knows that reasonable driv-

ers will not, and more significantly, perhaps

cannot safely use Autopilot. . . .

18. The NTSB has investigated several Tesla-re-

lated fatalities. For example, in Mountain View,

California, a Tesla’s Autopilot malfunctioned, and

the vehicle accelerated into a cement median at a

merge point of two intersecting highways, killing

the driver. The NTSB investigation resulted in a re-

port published on March 23, 2020 which stated, in

part:

Probable Cause – The National Transportation

Safety Board determines that the probable cause

of the Mountain View, California, crash was the

Tesla Autopilot system steering the sport utility ve-

hicle into a highway gore area due to system

limitations, and the driver’s lack of response due

to distraction likely from a cell phone game appli-

cation and overreliance on the Autopilot partial

driving automation system. Contributing to the

crash was the Tesla vehicle’s ineffective monitor-

ing of driver engagement, which facilitated the

driver’s complacency and inattentiveness.

19. Furthermore, the NTSB’s report noted the fol-

lowing:

a. The Tesla Autopilot did not provide an effective

means of monitoring the driver’s level of engage-

ment with the driving task;

b. Because monitoring of driver-applied steering

wheel torque is an ineffective surrogate measure

of driver engagement, performance standards

should be developed pertaining to an effective

method of ensuring driver engagement; and

c. In order for driving automation systems to be

safely deployed in a high-speed operating environ-

ment, collision avoidance systems must be able to

effectively detect and respond to potential haz-

ards, including roadside traffic safety hardware

and be able to execute forward collision avoidance

at high speeds.

20. The NTSB ultimately recommended that Tesla

incorporate system safeguards that limit the use of

automated vehicle control systems to those condi-

tions for which they were designed, or the

operational design domain (“ODD”).

21. Prior to the Mountain View, California acci-

dent, in March 2019, in Delray Beach, Florida, a

2018 Tesla Model 3 struck a semi-trailer truck

when the truck entered the highway without stop-

ping. At the time of the crash, the Tesla’s Autopilot

system was active, and the Tesla was traveling at

68 mph in a 55-mph posted speed limit area. The

Autopilot system and collision avoidance systems

did not classify the crossing truck as a hazard, did

not attempt to slow the vehicle, and did not pro-

vide a warning to the driver of the approaching

crossing truck. Further, the driver did not take eva-

sive action in response to the crossing truck.

(Am. Compl. ¶¶ 14-15, 18-21)

Tesla argues that these paragraphs should be struck from the

Amended Complaint because they do not directly pertain to, and

therefore bear no relevance to, the vehicle that Plaintiffs pur-

chased or the accident in which that vehicle was involved. (Mem.

at 10-11.) Plaintiffs argue, in response, that these factual allega-

tions “directly bear[] on Plaintiff’s claims that Tesla’s automated

features (including Autopilot) do not operate as expressly and

implicitly represented to consumers.” (Opp. at 14.)

While the challenged factual allegations are at most tangentially

relevant to Plaintiffs’ legal claims, they do relate to the subject

matter of the litigation: alleged defects with Tesla’s Autopilot

technology and the extent to which Tesla knew of and disclosed

those alleged defects. In addition, evidence of similar accidents

may be relevant to illustrate that the incident was not an isolated

occurrence. See Randi A.J. v. Long Is. Surgi-Ctr., 46 A.D.3d 74,

85-86 (2d Dep’t 2007). Thus, Tesla cannot meet the high stand-

ard for success on a Rule 12(f) motion to strike. See AdvanceMe,

Inc., No. 11 CV 3624 (VB), 2011 WL 6425488, at *2; see also

Lynch, 278 F.R.D. at 63. Tesla’s motion to strike paragraphs 14,

15, 18, 19, 20, and 21 of Plaintiffs’ Amended Complaint is de-

nied.

IV. CONCLUSION

For the reasons set forth above, Tesla’s Partial Motion to Dismiss

is GRANTED IN PART, with respect to Plaintiffs’ fraud claim, and

DENIED IN PART, with respect to Plaintiffs’ prayer for punitive

and exemplary damages. Tesla’s Motion to Strike certain factual

allegations from Plaintiffs’ Amended Complaint is DENIED.

SO ORDERED.

Dated: Brooklyn, New York

July 16, 2021

_/s/ Nicholas G. Garaufis_

NICHOLAS G. GARAUFIS

United States District Judge

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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