Amans v. Tesla, Inc.

Background

The plaintiffs asked the court to approve a proposed class-action settlement with Tesla and to award attorneys’ fees, litigation costs, and service awards. The case was consolidated with Case Nos. 21-cv-03681-VC and 21-cv-05528-VC.

The settlement class consisted of people in the United States who had entered into contracts with Tesla to purchase or install a Solar Roof, with or without a Powerwall energy-storage system, and whom Tesla notified around April 2021 would have to pay an increased price as a condition of performance. The court had preliminarily approved the settlement and certified the class for settlement purposes on October 20, 2023.

Settlement Approval

The court found that the class representatives and class counsel adequately represented the class, that the settlement resulted from arm’s-length negotiations assisted by a mediator, and that the settlement showed no obvious collusion, conflicts of interest, deficiencies, or preferential treatment. The court also found that the notice program provided direct notice to 100% of the settlement class and satisfied Federal Rule of Civil Procedure 23 and due process.

The settlement created a non-reversionary $6,080,000 fund. It allocated $1,406,400 to class members with qualifying out-of-pocket losses, $2,220,000 to certain class members who later elected to proceed with a Solar Roof installation at increased prices, and the remaining balance—after fees, costs, and service awards—to equal payments for other class members. The court found the settlement fair, reasonable, and adequate and confirmed the settlement class for purposes of entering final judgment.

Three objections were submitted. Two were withdrawn, and the court overruled the remaining objection. The order also recognized valid requests for exclusion from the class, including 29 timely exclusions and one untimely exclusion. Upon the settlement’s effective date, the settlement would release claims related to Tesla’s April 2021 price increases and the later termination of uncanceled Solar Roof contracts, but not claims based on Solar Roof contracts entered after the settlement agreement was executed.

Fees, Costs, and Service Awards

The court granted the request for $1,500,000 in attorneys’ fees, equal to 24.7% of the settlement fund. It applied the percentage-of-the-fund method and found the requested percentage reasonable. The court also found reasonable the counsel’s reported lodestar of approximately $1,273,386.50 for 1,888.4 hours of work and an approximately 1.18 multiplier. Ten percent of the awarded fees was to remain in the fund until the court authorized its release after a required accounting.

The court granted reimbursement of $9,692.60 in litigation costs, including mediation and other litigation expenses. It also granted $10,000 service awards to each plaintiff, finding that the plaintiffs had actively participated in the litigation and undertaken responsibilities for the benefit of the class.

Disposition and Continuing Administration

The court granted Plaintiffs’ Motion for Final Approval and Motion for Attorneys’ Fees, Costs, and Service Awards. The parties and settlement administrator were authorized to implement the settlement, including distributing payments. The parties were required to file post-distribution accountings, and the court retained jurisdiction over administration, completion, enforcement, and interpretation of the settlement and the approval order.