Tesla Owners Must Arbitrate False Advertising Claims over Autopilot Feature

A California federal judge has ruled that a group of people who own cars made by Tesla Inc TSLA.O must pursue claims that the company misled the public about its autopilot features in individual arbitration rather than court.

The ruling marks a significant victory for Tesla, as it means the company will not have to face class action claims on behalf of much larger groups of vehicle owners.

U.S. District Judge Haywood Gilliam in a decision issued on Saturday said four Tesla owners who filed a proposed class action last year had agreed to arbitrate any legal claims against the company when they accepted its terms and conditions while purchasing vehicles through a Tesla website.

A fifth plaintiff who did not sign an arbitration agreement waited too long to sue, Gilliam ruled in dismissing that plaintiff’s claims.