Tesla Will Have to Face a Class Claim Over ‘Phantom Breaking’

Tesla Inc. must fight a nationwide consumer fraud claims from a proposed class of Tesla owners who say the company failed to address its vehicles’ spontaneous braking incidents, a district court ruled Friday.

Joshua Santiago can proceed with his claim under the Illinois Consumer Fraud and Deceptive Business Practices Act on behalf of a proposed national class, according to an opinion in the US District Court for the Northern District of Illinois. Judge Georgia N. Alexakis ruled that Santiago established Article III standing to represent proposed class members outside of Illinois.

“Santiago does not need to show he can recover ...