Law Firm, Hagens Berman, Warns Tesla Owners: Don’t Sign Goodwill Agreements, Forfeit Your Rights

Consumer-rights law firm investigating agreement language on behalf of Tesla Model S owners

Consumer-rights law firm Hagens Berman is investigating a “goodwill” agreement from Tesla that purportedly requires Tesla owners to remain silent about vehicle repairs and defects and to sign a complete waiver of any claims against Tesla in exchange for repair costs.

“In today’s world, companies are chomping at the bit to trick consumers into signing away their rights, with arbitration language buried in the fine print,” said Steve Berman, managing partner of Hagens Berman. “We think Tesla’s skirting a very dangerous area, and are seeking more information from vehicle owners who have been forced to sign these so-called ‘goodwill’ agreements.”

According to recent news, Tesla Model S vehicles may be affected by a dangerous suspension defect that can cause it to fail at low speeds. Tesla owners have reported unusually rusty suspension joints.

Tesla owners are reporting that the automaker has asked owners to sign non-disclosure agreements, or “Goodwill letters” as it calls them, in exchange for cost to repair the defect. Under these agreements, Tesla owners also waive their right to discuss the defect. As a consumer, your rights could be in jeopardy, according to Hagens Berman.

“What we’re hearing from Tesla owners is outrageous,” Berman added. “Unfortunately, Tesla isn’t the first automaker to try this. Both Toyota and GM have bought back defective cars and entered gag agreements with owners of the vehicles, effectively trying to erase any evidence. We want to put consumers back in the driver’s seat.”

Tesla’s Goodwill agreement, in part, reads, “You agree to keep confidential our provision of the Goodwill, the terms of this agreement and the incidents or claims leading or related to our provision of the Goodwill. In accepting the Goodwill, you hereby release and discharge Tesla and related persons or entities from any and all claims or damages arising out of or in any way connected with any claims or incidents leading or related to our provision of the Goodwill.

“You further agree that you will not commence, participate or voluntarily aid in any action at law or in equity or any legal proceeding against Tesla or related persons or entities based upon facts related to the claims or incidents leading to or related to this Goodwill.”

Hagens Berman is one of the most experienced auto litigation law firms in the U.S. and has successfully taken on Toyota, Hyundai, Kia and other automakers for consumers. The law firm is also leading national charges against Volkswagen and Mercedes for the use of emissions-cheating software, and your claim will be handled by experts in automotive consumer law.

Find out more about Hagens Berman’s investigation into Tesla’s Goodwill agreements.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in 10 cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List eight times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160620005190/en/

Hagens Berman Sobol Shapiro LLPAshley Klann, [e-mail]