Tesla seeks sanctions after dousing car fire suit
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Lawyers for Tesla Motors Inc. are seeking sanctions against two plaintiffs firms after a federal judge found a securities lawsuit they filed against the luxury car company "utterly failed" to plead an actionable claim.
"As this court recognized over and over, plaintiffs' allegations were either incoherent or devoid of any factual support," wrote the Irell team, "and some of those allegations were outright disproven by the cited documents or plaintiffs' own confidential witnesses. But plaintiffs ignored this evidence and pressed on with their baseless claims."
In their motion for sanctions, Tesla's lawyers said plaintiffs ignored "the fact that in each of the three alleged class period fires, the car operated exactly as designed by warning the driver to pull over, preventing the fire from spreading, and keeping all passengers unharmed from the fire—even the driver in Mexico who crashed his Model S into a concrete wall and a tree after driving over 100 miles per hour."The suit wasted court resources and forced Tesla to spend time and money defending frivolous litigation, the Irell team wrote. "If ever there was an appropriate occasion to impose sanctions and mandatory fee shifting under the [Private Securities Litigation Reform Act], this is the case."
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