👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Nissan persuades US court to decertify brake defect class actions

Published 11/22/2024, 05:53 PM
Updated 11/22/2024, 06:05 PM
© Reuters. FILE PHOTO: A Nissan logo is seen during the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado/File Photo
NSANY
-

By Jonathan Stempel

(Reuters) - Nissan (OTC:NSANY) persuaded a federal appeals court on Friday to decertify 10 class actions accusing the Japanese automaker of selling cars and SUVs with defective automatic emergency braking systems that caused vehicles to stop suddenly for no reason.

The 6th U.S. Circuit Court of Appeals in Cincinnati said it was improper to let drivers of 14 Nissan models sue in groups under the laws of 10 individual states simply by claiming that the braking systems did not work.

Drivers claimed they experienced "phantom" activations of the systems at low overpasses, parking garages and railroad crossings, instead of when collisions might be imminent.

Writing for a three-judge panel, however, Chief Judge Jeffrey Sutton said some drivers may never have experienced sudden braking, or sought repairs to begin with.

He also said Nissan created "distinct" software upgrades for different models that appeared to fix the problem for some drivers, suggesting there was no common defect.

"Analyzing the various manifestations of the alleged defect is necessary to assess whether common evidence could vindicate the plaintiffs or Nissan on a classwide basis," Sutton wrote.

Class actions let plaintiffs potentially obtain greater remedies at lower costs than if forced to sue individually.

The litigation covers Nissan's Rogue from 2017 to 2020, Rogue Sport from 2017 to 2021, Altima from 2019 to 2021, and Kicks from 2020 to 2021.

The 10 states are California, Connecticut, Florida, Illinois, Massachusetts, Missouri, New York, Ohio, Pennsylvania and Texas.

Lawyers for the drivers did not immediately respond to requests for comment. Nissan and its lawyers did not immediately respond to similar requests.

© Reuters. FILE PHOTO: A Nissan logo is seen during the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado/File Photo

The appeals court returned the case to a trial judge in Nashville, Tennessee, for further proceedings, potentially allowing new evidence supporting class certification. Nissan has plants in Smyrna and Decherd, Tennessee.

The case is In re: Nissan North America Inc Litigation, 6th U.S. Circuit Court of Appeals, No. 23-5950.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.