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By
Matt Posky on May 2, 2018

America’s gas war is heating after 17 states, as well as the District of Columbia, filed a lawsuit against the Environmental Protection Agency’s decision to redefine U.S. vehicle emissions and fuel efficiency rules through 2025.
In April, EPA chief Scott Pruitt said the existing standards for model year 2022 to 2025 vehicles should be revised. The suit, filed in the U.S. Court of Appeals for the District of Columbia, alleges the EPA acted unpredictably, failed to follow its own regulations, and was in direct violation of the Clean Air Act. New York Attorney General Eric Schneiderman claimed the “Trump administration conducted a phony study” to justify altering emission rules to appease automakers and the oil industry.
Meanwhile, U.S. Representatives Doris Matsui of California and Paul Tonko of New York are demanding the EPA hand over all documents related to the study that resulted in the proposed changes to fuel economy standards. (Read More…)
By
Matt Posky on February 28, 2018

News broke earlier this week of a Ferrari dealer embroiled in a lawsuit after a salesman accused the company of authorizing the use of devices that roll back vehicle odometers. Despite being a great way to improve the valuation of a used car, the practice is generally frowned upon — our best guess is because it’s super shady and totally illegal.
However, it was unclear if the issue revolved around one grubby dealership in Palm Beach or a systemic problem that included the manufacturer. The DEIS Diagnostics System that made the shenanigans possible does require online authorization from Ferrari corporate offices. But it could be that someone at home base didn’t know the extent of what the tool was actually being used for.
Unfortunately, they did. This week, details emerged from the case files of Robert “Bud” Root’s lawsuit against New Country Motor Cars. Back in April of 2017, Ferrari issued a memo to the dealership that can best be paraphrased as “cut it out.” (Read More…)
By
Matt Posky on February 15, 2018

Late last year, Ford Motor Company decided to sue professional wrestler and actor John Cena after he decided to sell his GT supercar. Hoping to keep ownership of the vehicle exclusive, the automaker included a clause in the ownership contract that expressly forbade anyone from selling it within two years of taking delivery. Cena decided to flip the vehicle early, causing Ford to go after him in the courts on breach of contract, fraudulent misrepresentation, and unjust enrichment.
His position appeared to be indefensible. Ford’s lawsuit even alleges that John apologized after the automaker took him to task, saying, “I completely understand and as stated am willing to work with you and Ford to make it right.”
However, the winds may have shifted in his favor. Cena is reportedly asking the judge in the case to throw out the lawsuit on the grounds that his contract never included the clause that forbid resale within the first 24 months of ownership. (Read More…)
By
Matt Posky on January 10, 2018

Are you an automaker that’s currently producing, or has ever produced, a diesel engine? If so, the odds are pretty good you’ll eventually be sued over its existence. A new lawsuit by truck owners, filed on Wednesday, alleges Ford Motor Company installed emissions-cheating software in F-250 and F-350 Super Duty trucks — built between 2011 and 2017 — to ensure they passed federal testing.
At this point, all of the Detroit Three manufacturers have been accused of some form of diesel deceit. Which makes us wonder how warranted these lawsuits are. Volkswagen’s scandal started when an independent source tipped off U.S. regulatory agencies, but these truck cases frequently begin as class-action suits on somewhat specious grounds. (Read More…)
By
Matt Posky on December 14, 2017

Uber Technologies Inc. received quite a bit of publicity when it purchased autonomous semi truck developer Otto in 2016. Still, it saw even more headlines when it became embroiled in a trade secrets lawsuit with Waymo. That case involved files obtained by Anthony Levandowski, former Google engineer and co-founder of the self-driving truck company, who was accused of selling confidential data to Uber (along with his business).
The bad news is that Uber now the subject of a federal investigation and knee-deep in the aforementioned litigation. But the good news is that it appears to have scored a really sweet deal on Otto. (Read More…)
By
Matt Posky on December 1, 2017

Ford wasn’t kidding about wanting to keep ownership of the GT as exclusive as possible. In addition to setting production numbers incredibly low, the company also carefully vetted prospective supercar buyers and made them promise not to resell the vehicle for at least two years.
While atypical of Ford-branded vehicles, clauses like that aren’t uncommon among high-end manufacturers selling an ultra-rare model. But what happens when a customer decides to ignore the contract and flip the vehicle prematurely?
Well, as wrestling-icon John Cena found out, the automaker takes you to court. On Thursday, Ford Motor Company filed suit against Cena in the U.S. District Court in Michigan over breach of contract, fraudulent misrepresentation, and unjust enrichment. (Read More…)
By
Matt Posky on October 30, 2017

Earlier this month, General Motors agreed to a $120 million settlement over faulty ignition switches and the uncouth way in which it handled that particular, ahem, “safety issue.” The settlement applied to 49 states and the District of Columbia but not Orange County, California. That region of the U.S. required a separate case, an additional $13.9 million, and some exuberant scorning.
California faulted GM with not only selling defective vehicles but intentionally concealing serious safety defects through the careful usage of language.
Prosecutors claimed the company specifically trained its staff to never use words like “defect” or “stall,” and even avoid dealing with any safety issues whenever possible, while being simultaneously aware of a problem that ultimately resulted in the deaths of over 120 individuals. While this matter had been more-or-less settled via an earlier $900 million agreement (resulting from the Justice Department’s investigation, in 2015), it deferred direct criminal prosecution of the company for three years. Perhaps that caveat rubbed Californian prosecutors the wrong way and they wanted some additional retribution. (Read More…)
By
Matt Posky on October 19, 2017

Two Austin-based police officers have filed lawsuits against Ford Motor Company after being incapacitated by carbon monoxide that leaked into the cabin of their Interceptor Utilities. Ford finds itself flooded with hundreds of complaints over unacceptable carbon monoxide levels in 2011-2017 Ford Explorers, receiving the most flack from police departments with problematic SUVs. Officers across America have complained of dizziness while driving, with some requiring hospitalization.
The issue had become so bad that Austin’s police department actually pulled about 400 Explorer-based squad cars from its motor pool. Scrambling for a solution, Ford has implemented a special task force to investigate the problem and develop a solution. The automaker also offered to fix 1.33 million Explorers to ensure there is no exhaust leak, but was quick to remind everyone this wasn’t a recall, as no U.S. government standard for in-vehicle carbon monoxide levels exists. (Read More…)
By
Matt Posky on October 9, 2017

Porsche is apparently seeking 200 million euros — or $234 million — in damages from its Audi stablemate over the costs associated with using its emissions cheating diesel engines. According to reports, Porsche has already issued its claim to Audi and the wheels of justice have been set in motion.
With no verified sources or official word from either automaker, the news is more than just a little strange considering both manufacturers are part of Volkswagen Group. However, Audi did supply both Porsche and Volkswagen with defeat device-equipped 3.0-liter V6s for use in various models. One of those models was Porsche’s Cayenne, and sales of the TDI variant were shelved as the scandal raged. (Read More…)
By
Matt Posky on October 6, 2017

On Thursday, a U.S. judge dismissed the criminal charges against Toyota Motor Corp after the automaker completed a mandated three years of probationary monitoring. As part of its $1.2 billion settlement, where it admitted to intentionally misleading the public over dangerous unintended acceleration and building vehicles with faulty parts, Toyota was assigned former U.S. attorney David Kelley as an independent safety monitor.
“It is a long road ahead,” he said upon his appointment in 2014. “If you look at the deferred prosecution agreement there is a lot of ground to cover.”
The agreement gave Kelley sweeping powers to hire staff and review all of Toyota’s policies and operating procedures for communicating safety issues internally and to regulators. Kelley and his staff were required to be payed standard consulting fees and rates by Toyota, but this will be their last week on the job. (Read More…)
By
Matt Posky on August 9, 2017

Takata, the airbag supplier whose cost-cutting measures ended up killing people, issued a request on Wednesday to suspend lawsuits against automakers filed by those injured by its faulty inflators.
Without the injunction, Takata claims the rampant litigation would prohibit management from completing the sale of the company’s viable operations to Key Safety Systems for $1.6 billion, threatening the supply of air bag inflators meant to replace already recalled ones (which may include all previously repaired units, pending an EPA investigation).
Obviously, the injured parties want restitution. Plaintiffs’ lawyers call the proposed injunction “an abuse of the bankruptcy laws for the benefit of all of the world’s largest automobile manufacturers.” The fear is that Takata’s request will delay consideration of numerous lawsuits for several months to a year, which is a long time to wait when you’ve been wronged. (Read More…)
By
Matt Posky on July 10, 2017

Alphabet Inc.’s autonomous car division Waymo, formerly Google, abandoned three of four patent-infringement claims in its lawsuit against Uber Technologies Inc. in a surprise move on Friday.
Earlier, U.S. District Judge William Alsup specifically asked Waymo to narrow its more than 100 trade secrets claims to fewer than 10 if they ever wanted to place them in front of a jury. During a June 7th hearing, he also said, “I want to reiterate to the plaintiff here that you should think a lot about just dropping the patent part of this case.”
Waymo listened and dumped the majority of its patent claims to focus more heavily on the trade secret issues surrounding the 14,000 files stolen by ex-employee Anthony Levandowski — which is, perhaps, the only thing the two companies can agree upon. Uber is glad to see the focus shift back onto Levandowski, who has been at the core of the case since day one. Now it only has to prove it didn’t pay for access to the data instead of spending time differentiating its own designs from Waymo’s. (Read More…)
By
Matt Posky on June 23, 2017

It would seem Waymo’s case against Uber is progressing at the latter’s expense. Anthony Levandowski, the former Uber employee at the center of the intellectual property theft, was apparently covered in writing for any legal action taken against for things like… fraud and stealing trade secrets.
The clause, which is literally outlined as “Pre-Signing Bad Acts” in the contract, was part of closed documents U.S. District Judge William Alsup previously assumed would be invaluable in progressing the case. Alphabet, which owns Waymo, accused Uber of being complicit in Levandowski’s alleged theft – suggesting the ride-sharing rival intentionally hired him in the hopes he would bring inside information acquired during his tenure at Google. It was a notion Alsup also seemed more than willing to entertain.
“It remains entirely possible that Uber knowingly left Levandowski free to keep that treasure trove of files as handy as he wished [provided he keep the data on his own personal devices], and that Uber willfully refused to tell Levandowski to return the treasure trove to its rightful owner,” the judge said back in May. (Read More…)
By
Matt Posky on May 25, 2017

Suing automakers over diesel emissions violations is quickly on its way to becoming passé.
Since Volkswagen admitted to installing software that circumvented pollution laws, regulators have been on the hunt for their next big target. While it might make their efforts seem like a bit of a witch hunt, there’s good reason to be on the lookout. Studies have shown diesel emission levels are often much higher than analysts expected, with experts attributing the results to the high probability that other automakers are skirting regulatory guidelines — likely by way of defeat devices.
Daimler, Renault, and PSA Group are all being investigated in their home countries as FCA faces legal action within the United States.
General Motors is now being sued for allegedly installing defeat devices in its trucks to sidestep emissions tests, making it the sixth major manufacturer accused of diesel cheating since 2015. However, General Motors isn’t dabbling in gray areas, acting confused, or assuring the public it will get to the bottom of the accusations. It says the claims against it are flat out wrong. (Read More…)
By
Matt Posky on May 12, 2017

Waymo’s lawsuit against Uber Technologies’ alleged theft and usage of autonomous trade secrets is going to trial.
Judge William Alsup ruled Uber could not force the case into private arbitration and is referring the matter to the United States Attorney for a very public investigation.
This is everything the ride-hailing company didn’t want.
(Read More…)
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