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Tesla Lawsuit in 2026: Settlement Payouts and Claims

lawdrafted.com
On: May 11, 2026 |
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Tesla is facing a wave of lawsuits in 2026, and the tesla lawsuit situation has grown into one of the biggest legal stories in the auto industry. Multiple class action cases are moving toward settlement or trial, covering everything from Autopilot failures to battery defects to employment discrimination.

If you own a Tesla, work for the company, or hold its stock, some of these cases could put money in your pocket. Several pending lawsuits have combined potential settlement funds reaching into the hundreds of millions of dollars.

This article breaks down every active Tesla lawsuit category for 2026. You will find estimated payout ranges, eligibility rules, filing deadlines, and the exact steps to submit a claim.

Some of these deadlines are approaching fast. Missing them means leaving money on the table, no matter how strong your case might be.


Tesla Class Action Lawsuit 2026

The tesla class action lawsuit landscape in 2026 includes at least a dozen active cases spread across federal and state courts. These cases group thousands of plaintiffs together against Tesla Inc. over shared allegations of defective products, misleading marketing, and workplace violations.

Several of the most significant cases are centralized in the U.S. District Court for the Northern District of California, where Tesla’s headquarters falls under jurisdiction. Others are pending in Texas, New York, and Florida state courts.

Here is a snapshot of the major categories:

Case CategoryCourtStatus (2026)Estimated Class Size
Autopilot/FSD DefectN.D. CaliforniaSettlement talks500,000+ owners
Battery DegradationN.D. CaliforniaClass certified300,000+ owners
Securities FraudE.D. TexasDiscovery phaseInvestor class TBD
Employment DiscriminationCalifornia stateMediation6,000+ employees
Data PrivacyVarious statesEarly filing stageUnknown

The sheer volume of cases is unusual even for a company Tesla’s size. What makes 2026 different from prior years is that several of these cases have cleared the class certification hurdle, meaning courts have agreed the claims share enough common ground to proceed as group actions.

That is a big deal. Class certification is often the hardest part. Once a court grants it, settlement pressure on the defendant company increases dramatically.


Tesla Lawsuit Update 2026

The most important tesla lawsuit update for 2026 centers on the Autopilot defect litigation. As of early 2026, settlement negotiations are underway in the consolidated Autopilot class action case after years of discovery and pretrial motions.

Tesla had previously fought class certification in this case aggressively. The court’s decision to certify the class in late 2025 shifted the dynamic. Now both sides are talking numbers.

On the securities fraud front, the SEC’s investigation into Tesla’s Full Self-Driving marketing claims has produced new evidence that plaintiff attorneys are incorporating into their case. Discovery is expected to close by mid-2026.

Key developments to watch this year:

  • Q1 2026: Autopilot settlement mediation sessions scheduled
  • Q2 2026: Battery degradation case preliminary settlement hearing
  • Q3 2026: Employment discrimination trial date set
  • Q4 2026: Securities fraud case discovery deadline

The employment discrimination case is moving fastest toward trial. A California state judge set a firm trial date after mediation efforts failed in late 2025. This case involves allegations of racial discrimination and hostile work environment at Tesla’s Fremont factory.

Each of these timelines could shift. Courts reschedule. Parties request extensions. But the trajectory for 2026 points toward several resolution points that Tesla owners and employees should track closely.


Tesla Settlement Payout 2026

Estimated tesla settlement payout amounts for 2026 cases vary widely depending on the type of claim and the strength of evidence. No final approved settlement has been announced as of this writing, but court filings, comparable auto industry settlements, and plaintiff attorney projections offer a reasonable range.

Lawsuit TypeEstimated Payout Per ClaimantTotal Settlement Fund (Projected)
Autopilot Defect$1,500 to $5,000$300M to $700M
Battery Degradation$2,000 to $8,000$200M to $500M
Employment Discrimination$5,000 to $25,000$100M to $250M
Securities Fraud$0.50 to $3.00 per share$400M to $1B
Data Privacy$100 to $500TBD

These numbers come from analyzing similar settlements in the auto industry. For context, the GM ignition switch settlement paid out roughly $600 million to affected owners. Volkswagen’s diesel emissions scandal resulted in payments of $5,000 to $10,000 per vehicle.

Tesla’s cases have smaller per-vehicle damage claims in some categories but affect a much larger class of owners. The Autopilot case alone could cover more than half a million vehicles sold with the feature between 2016 and 2024.

Keep in mind that these are estimates. Final numbers depend on the settlement fund size, how many people file claims, and what tier of compensation each claimant falls into.


Key Takeaway: Multiple Tesla lawsuits are moving toward resolution in 2026, with combined potential settlement funds in the billions and individual payouts ranging from a few hundred dollars to $25,000 depending on the case type.


How Much Will I Get from the Tesla Lawsuit

Your individual payout from a tesla lawsuit depends on several factors, and the honest answer is that most class action members receive less than they expect. That is the reality of large class actions where the settlement fund gets split among thousands or hundreds of thousands of claimants.

Here is what determines your specific amount:

  • Type of claim: Product defect claims typically pay more than data privacy claims
  • Severity of harm: Did you experience an actual Autopilot malfunction or crash? Higher payout
  • Vehicle model and year: Some model years are affected more than others
  • Proof of purchase: Having original purchase documents strengthens your position
  • Claim tier placement: Most settlements create 2 to 4 tiers based on damage severity

Think of it like an insurance claim. The person whose car actually caught fire gets more than the person whose battery capacity dropped 10%. Both are valid claims. Both qualify. But the compensation reflects the difference in harm.

For the Autopilot case specifically, claimants who experienced phantom braking incidents, unintended acceleration, or actual crashes are expected to receive the highest tier payouts. Owners who simply had the software installed but experienced no incidents would likely receive the lowest tier.

Damage LevelExpected TierEstimated Payout
Crash or injury from AutopilotTier 1$3,000 to $5,000+
Documented malfunction (no crash)Tier 2$1,500 to $3,000
Feature purchased but underperformedTier 3$500 to $1,500
Vehicle in affected class (no incident)Tier 4$100 to $500

Who Qualifies for the Tesla Lawsuit

You may qualify for a tesla lawsuit if you owned, leased, or purchased a Tesla vehicle during the time period covered by the specific class action case. Each lawsuit has its own eligibility window, and some cover vehicles sold as far back as 2012.

The broadest cases cover anyone who purchased Tesla’s Autopilot or Full Self-Driving package. Tesla sold these features to hundreds of thousands of buyers with marketing claims that plaintiffs argue were misleading or false.

Here is a quick eligibility guide by case type:

CaseWho QualifiesTime Period
Autopilot DefectOwners who purchased Autopilot or FSD2016 to 2024
Battery DegradationModel S and Model X owners with range loss2012 to 2022
Employment DiscriminationCurrent and former Fremont factory workers2017 to present
Securities FraudInvestors who purchased TSLA stockVaries by case
Data PrivacyOwners whose vehicle data was shared2019 to present

You do not need to have filed a complaint with Tesla previously. You do not need to have reported a problem to NHTSA. Class actions cover everyone in the defined class unless they actively opt out.

If you sold your Tesla before the lawsuit was filed, you may still qualify. Eligibility typically attaches at the time of purchase, not the time of the lawsuit. The key question is whether you owned the vehicle during the class period.


Tesla Lawsuit Eligibility Requirements

Specific tesla lawsuit eligibility requirements vary by case, but most share a common set of criteria that you need to meet. Understanding these requirements now can save you headaches when the claims process opens.

General requirements across most Tesla class actions:

  • Proof of ownership or lease: Title documents, purchase agreement, or lease contract
  • Vehicle identification: Your Tesla’s VIN (Vehicle Identification Number)
  • Purchase date within the class period: Your buy date must fall within the lawsuit’s covered timeframe
  • Residency: Some state-level cases require you to be a resident of that state
  • No prior individual settlement: If you already settled privately with Tesla over the same issue, you are likely excluded

For the employment discrimination case, eligibility requirements are different:

  • You must have worked at Tesla’s Fremont, California facility
  • Your employment dates must overlap with the class period (2017 to present)
  • You must be a member of the protected class identified in the complaint

For the securities fraud case, you need proof that you purchased or held TSLA shares during the relevant period. Brokerage statements serve as your primary documentation.

One thing that trips people up: you do not need to have experienced the exact defect described in the lawsuit to be part of the class. If your vehicle falls within the class definition, you qualify. You might receive a lower-tier payout, but you are still eligible.


Key Takeaway: Eligibility for Tesla lawsuits in 2026 is broad, covering vehicle owners, employees, and investors across different time periods, and you do not need to have personally experienced the specific defect to qualify as a class member.


How to File a Tesla Class Action Claim

Filing a tesla class action claim is straightforward once you know where to go and what to bring. The process typically involves five steps, and you can complete most of them online in under 30 minutes.

Step 1: Confirm your eligibility.
Check whether your vehicle VIN, employment dates, or stock purchase dates fall within the class period. The settlement administrator’s website will have a lookup tool for this.

Step 2: Gather your documents.
Collect your purchase agreement, vehicle registration, service records showing any defects, and any correspondence with Tesla about the issue.

Step 3: Submit the claim form.
Fill out the official claims form through the settlement administrator. This is usually available online. Paper forms are available by request.

Step 4: Attach supporting evidence.
Upload or mail copies of your documentation. The more evidence you provide, the higher your potential payout tier.

Step 5: Wait for processing.
The administrator reviews claims, verifies eligibility, and assigns payout tiers. You will receive confirmation by mail or email.

Filing StepWhat You NeedTime Required
Eligibility checkVIN or purchase info5 minutes
Document gatheringPurchase records, service records15 to 30 minutes
Form submissionOnline or paper form10 to 15 minutes
Evidence uploadDigital copies of documents5 to 10 minutes
Processing waitPatience60 to 180 days

You do not need to hire a lawyer to file a class action claim. The class attorneys represent you as part of the group. Their fees come out of the settlement fund, not your pocket.


Tesla Lawsuit Deadline 2026

Every tesla lawsuit deadline in 2026 is different depending on the specific case. Missing your deadline means you forfeit your right to receive any payout, so this is the single most important piece of information to track.

As of early 2026, here are the projected key deadlines:

CaseDeadline TypeProjected Date
Autopilot DefectClaim filing deadlineTBD (pending settlement approval)
Battery DegradationOpt-out deadlineMid-2026
Employment DiscriminationClaim form dueSeptember 2026
Securities FraudResponse deadlineLate 2026
Data PrivacyClass member notificationQ2 2026

The Autopilot case deadline has not been set yet because settlement terms have not received preliminary court approval. Once a judge approves the preliminary settlement, a claims period opens, typically lasting 90 to 120 days.

For the battery degradation case, the opt-out deadline is especially important. If you opt out, you preserve your right to sue Tesla individually. If you stay in the class, you accept whatever the group settlement provides.

Think about it like a store’s return policy. There is a window. Once it closes, the store will not take the item back, no matter how good your reason is. These court deadlines work the same way, except the stakes are much higher.

Set calendar reminders. Check the settlement administrator’s website periodically. Deadlines in class action cases sometimes get extended, but counting on that is a bad strategy.


Tesla Autopilot Lawsuit

The tesla autopilot lawsuit is the largest and most closely watched case in the 2026 Tesla litigation wave. This class action alleges that Tesla sold Autopilot and Full Self-Driving capabilities with marketing promises the technology could not deliver, putting drivers at risk.

Plaintiffs argue that Tesla marketed FSD as being capable of fully autonomous driving, when in reality the system requires constant human supervision and has been linked to hundreds of crashes. NHTSA data shows that Tesla vehicles with Autopilot engaged were involved in more than 700 reported crashes between 2019 and 2024.

The case consolidated several individual lawsuits into one class action in the Northern District of California. Key allegations include:

  • Misleading marketing: Tesla called the feature “Full Self-Driving” when it was not
  • Known defects: Phantom braking, failure to detect stationary objects, lane departure errors
  • Failure to recall: Plaintiffs allege Tesla delayed necessary software recalls
  • Elon Musk’s public statements: Repeated promises of fully autonomous capability that did not materialize

Tesla’s defense centers on the argument that Autopilot is a driver-assist feature, not autonomous driving, and that the owner’s manual clearly states drivers must keep their hands on the wheel. The company also points to over-the-air software updates as evidence of continuous improvement.

This case matters beyond the settlement money. Its outcome could set a precedent for how car companies market AI-driven features to consumers.


Key Takeaway: The Tesla Autopilot lawsuit is the biggest case heading toward potential settlement in 2026, with over 500,000 affected owners and allegations that Tesla knowingly overpromised the capabilities of its self-driving technology.


Tesla Battery Defect Lawsuit

The tesla battery defect lawsuit targets sudden and premature battery degradation in Tesla Model S and Model X vehicles. Owners report losing 20% to 40% of their vehicle’s original range within a few years, far beyond what Tesla’s warranty promises.

Court filings show that Tesla was aware of battery degradation issues as early as 2015 but continued to market range numbers that many owners would never sustain. Some owners allege that over-the-air software updates actually throttled their battery capacity without notice or consent.

The class includes Model S and Model X vehicles manufactured between 2012 and 2022. Here are the core claims:

  • Overstated range: Tesla advertised range figures that degraded rapidly
  • Secret software throttling: Updates reduced battery capacity by 10% to 20%
  • Warranty failures: Tesla denied warranty claims for range loss
  • Diminished resale value: Battery degradation crushed used Tesla prices
VehicleModel Years AffectedReported Range Loss
Model S2012 to 202015% to 40%
Model X2015 to 202210% to 30%
Model 3 (limited)2018 to 20215% to 15%

For context, losing 30% of a 300-mile range means your car now drives only 210 miles on a full charge. That is a huge difference for daily commuters and road trippers alike.

The preliminary settlement discussions suggest a fund of $200 million to $500 million, with individual payouts based on the documented percentage of range loss per vehicle.


Tesla Lemon Law Claim

tesla lemon law claim is a different legal path from a class action, and it might actually get you more money. Lemon laws are state laws that protect buyers who purchase vehicles with defects the manufacturer cannot fix after a reasonable number of attempts.

Every state has its own lemon law, and the specifics vary. But the general idea is the same: if your Tesla has a serious defect and the dealer or service center cannot fix it after 3 to 4 repair attempts (or the car spends more than 30 days in the shop), you may be entitled to a full refund or vehicle replacement.

Common Tesla defects that support lemon law claims:

  • Repeated Autopilot failures
  • Battery that will not hold charge
  • Paint and panel alignment defects
  • Touchscreen failures (the screen is the car’s primary control)
  • Suspension issues
  • Door handle malfunctions
StateRepair Attempts RequiredDays Out of ServiceRemedy
California2 to 4 attempts30 daysRefund or replacement
Texas4 attempts30 daysRefund or replacement
Florida3 attempts30 days (or 15 for safety)Refund or replacement
New York4 attempts30 daysRefund or replacement

The advantage of a lemon law claim over a class action is the payout. A successful lemon law case can get you the full purchase price of your vehicle back, minus a usage fee. That could mean $40,000 to $100,000 or more, compared to a few thousand dollars from a class action.

The downside is that lemon law claims typically require you to hire your own attorney. Many lemon law attorneys work on contingency, meaning they only get paid if you win. Tesla is required to pay your attorney fees in most states if you prevail.


Tesla Employment Discrimination Lawsuit

The tesla employment discrimination lawsuit centers on allegations of systemic racial harassment and discrimination at Tesla’s Fremont, California manufacturing plant. This case has been building since 2017, and 2026 is shaping up as the year it either settles or goes to trial.

The lawsuit was initially brought by the California Department of Fair Employment and Housing (now the Civil Rights Department). It alleges that Black employees at the Fremont factory faced racial slurs, hostile work conditions, and retaliation for reporting discrimination.

Key facts about this case:

  • Over 6,000 current and former employees may be part of the class
  • Tesla’s Fremont plant employs approximately 10,000 workers
  • Individual employees have received jury verdicts of up to $3.2 million in separate cases
  • Tesla has denied systemic discrimination while settling several individual claims
Case DetailInformation
Lead AgencyCalifornia Civil Rights Department
FacilityTesla Fremont Factory
Class Period2017 to present
AllegationsRacial harassment, hostile work environment, retaliation
Trial DateSet for Q3 2026
Estimated Class Size6,000+ workers

The trial date in Q3 2026 is significant. If Tesla cannot reach a settlement before then, this case goes to a jury. Given the size of individual verdicts that juries have already awarded in separate Tesla discrimination cases, the company faces enormous financial exposure.

Former employees do not need to still work at Tesla to participate. If you worked at the Fremont plant during the class period and experienced or witnessed discriminatory conduct, you are likely part of this class.


Key Takeaway: Tesla faces serious legal exposure across product, employment, and consumer claims in 2026, with the employment discrimination case particularly risky for the company because of a firm trial date and a history of large jury verdicts against Tesla in individual cases.


Tesla Securities Fraud Lawsuit

The tesla securities fraud lawsuit targets statements made by Tesla and CEO Elon Musk about the company’s Autopilot and Full Self-Driving technology. Investors allege that these statements inflated Tesla’s stock price and that shareholders suffered losses when the truth became apparent.

This case is built around the legal theory that Tesla made materially false or misleading statements about FSD’s capabilities and timeline. Musk repeatedly promised fully autonomous driving by specific dates that came and went without delivery.

Core allegations include:

  • 2019 Autonomy Day claims: Musk stated Tesla would have 1 million robotaxis on the road by 2020
  • Repeated FSD timeline promises: Tesla charged customers $10,000 to $15,000 for FSD features that remain incomplete
  • NHTSA investigation disclosures: Tesla allegedly downplayed the severity of federal safety investigations
  • Stock buyback timing: Questions about whether insiders sold shares while knowing FSD was behind schedule

The class of investors typically includes anyone who purchased TSLA stock during the period when the alleged misrepresentations were made. This period has not been finalized by the court but likely spans from 2019 to 2024.

Case ElementDetail
CourtU.S. District Court, Eastern District of Texas
PhaseDiscovery (closing mid-2026)
Legal TheorySecurities fraud under Rule 10b-5
DefendantsTesla Inc., Elon Musk
Investor Class PeriodApproximately 2019 to 2024
Estimated Exposure$400M to $1B+

Securities fraud settlements in the auto industry have historically been substantial. Volkswagen paid $1.2 billion to settle its investor fraud case related to the diesel emissions scandal. Tesla’s case involves different facts but similar allegations of misleading investors about core product capabilities.


Tesla Data Privacy Lawsuit

The tesla data privacy lawsuit is among the newer cases in the 2026 Tesla legal landscape. These claims allege that Tesla collected, stored, and in some cases shared vehicle camera footage and driver data without proper consent.

Reports surfaced in 2023 that Tesla employees had shared sensitive images and videos captured by vehicle cameras, including footage from owners’ garages and private property. This sparked multiple privacy complaints and eventually formal legal action.

The privacy claims vary by state because data privacy laws differ significantly:

  • California (CCPA/CPRA): Strongest protections, statutory damages of $100 to $750 per incident
  • Illinois (BIPA): If biometric data was collected, damages up to $5,000 per violation
  • Texas (TDPSA): New privacy law with enforcement mechanisms
  • Other states: Claims under general privacy torts and consumer protection statutes
Privacy IssueAllegation
In-cabin camera recordingRecorded drivers without clear consent
External camera footageCaptured and stored images of bystanders and private property
Employee data sharingEmployees shared private footage internally
Data retentionTesla retained footage longer than necessary

These cases are still in early stages. Class certification has not been granted in most jurisdictions. But the potential class is enormous because every Tesla vehicle manufactured after 2016 contains multiple cameras that record continuously.

Individual payouts in data privacy cases tend to be small, often in the $100 to $500 range. The exception is Illinois BIPA cases, where per-violation damages can be significant. The Facebook BIPA settlement, for comparison, paid out $397 per claimant.


Tesla Settlement Timeline

The tesla settlement timeline for 2026 cases follows a predictable pattern, though exact dates depend on court schedules and negotiation progress. Understanding this timeline helps you plan when to expect notifications, deadlines, and payouts.

Here is how a typical class action settlement unfolds:

PhaseWhat HappensExpected Timing
Settlement agreementParties agree on termsQ1 to Q2 2026 (Autopilot case)
Preliminary approvalJudge reviews and approves notice plan30 to 60 days after agreement
Class noticeSettlement administrator notifies class members30 to 45 days after preliminary approval
Opt-out/objection periodClass members decide whether to stay in45 to 90 days after notice
Final approval hearingJudge approves the settlement30 to 60 days after opt-out period closes
Claims processingAdministrator reviews and verifies claims90 to 180 days
Payout distributionChecks or direct deposits sent30 to 60 days after processing

From start to finish, the process typically takes 8 to 14 months from the initial settlement agreement to checks arriving in your mailbox. That means if the Autopilot case settles in Q1 2026, payouts could arrive as late as Q1 or Q2 2027.

This is the part nobody likes hearing. Class actions move slowly. The legal system was not designed for speed. But the trade-off is that you get compensation without having to hire your own attorney or go through individual litigation.

The battery degradation case is slightly ahead of the Autopilot case in the timeline. If preliminary approval happens in mid-2026, payouts from that case could arrive by early 2027.


Key Takeaway: Tesla settlement timelines stretch 8 to 14 months from agreement to payout, so claimants should file early, set calendar reminders for deadlines, and expect payments in late 2026 or early to mid 2027 for cases settling this year.


Tesla Settlement Tax Implications

Yes, you may owe taxes on your tesla settlement money. The IRS treats different types of settlement proceeds differently, and understanding this before you get your check can prevent a surprise tax bill.

Here is the general rule: compensatory damages for physical injury or physical sickness are tax-free. Everything else is usually taxable. Since most Tesla class action claims involve property damage (your car) or economic loss (overpaying for FSD), those payouts are likely taxable.

Settlement TypeTaxable?IRS Treatment
Physical injury from Autopilot crashNoExcluded under IRC Section 104(a)(2)
Property damage (battery degradation)YesTaxable as ordinary income
Economic loss (overpayment for FSD)YesTaxable as ordinary income
Employment discriminationPartiallyEmotional distress damages are taxable; back pay is taxable
Securities fraudDependsTreated as return of capital up to your basis, then capital gains
Punitive damagesAlways yesTaxable regardless of underlying claim

The settlement administrator will send you an IRS Form 1099 if your payout exceeds $600. This form reports the income to both you and the IRS, so there is no way to avoid reporting it.

For securities fraud settlements, the tax treatment is more favorable. If your payout is less than or equal to the amount you lost on your TSLA investment, it is treated as a return of capital and not taxed. Only amounts exceeding your loss are taxed as capital gains.

Consider setting aside 25% to 30% of any taxable settlement payout for federal and state taxes. This is a rough estimate, and your actual rate depends on your total income for the year. Talking to a tax professional before spending your settlement money is a smart move.


Frequently Asked Questions

Is there a Tesla class action lawsuit I can join in 2026?

Yes, several Tesla class action lawsuits are active in 2026 covering Autopilot defects, battery degradation, employment discrimination, securities fraud, and data privacy.
Most cases are open to new class members until the opt-out deadline passes.
Check the settlement administrator for each case to confirm your eligibility using your VIN or purchase records.

How much money will I get from a Tesla settlement?

Individual payouts range from $100 to $25,000 depending on the case type and severity of your claim.
Autopilot defect claims are estimated at $500 to $5,000 per claimant, while employment discrimination claims could reach $25,000.
Your exact amount depends on which payout tier the settlement administrator assigns to your claim.

What is the deadline to file a Tesla lawsuit claim in 2026?

Deadlines vary by case, with the employment discrimination claim form due by September 2026 and other deadlines still pending court approval.
The Autopilot defect case deadline will be set once the settlement receives preliminary court approval.
Check the official settlement notice for your specific case to confirm exact dates.

Do I need a lawyer to join a Tesla class action lawsuit?

No, you do not need your own lawyer to participate in a Tesla class action.
The class attorneys represent all members, and their fees are paid from the settlement fund.
If you prefer to file an individual lawsuit or lemon law claim, hiring your own attorney is recommended but many work on contingency.

Will I have to pay taxes on my Tesla settlement money?

Most Tesla settlement payouts are taxable as ordinary income, with the exception of compensation for physical injuries.
The settlement administrator will send you an IRS Form 1099 if your payout exceeds $600.
Set aside 25% to 30% of your payout for taxes and consider consulting a tax professional.


The Tesla lawsuit situation in 2026 is real, active, and worth your attention. Whether you are a vehicle owner, a former employee, or an investor, at least one of these cases likely affects you.

Check your eligibility now. Gather your documents. Mark the deadlines on your calendar.

These settlement windows do not stay open forever. The people who file early and file correctly are the ones who get paid. Do not wait until the deadline is a week away to start looking for your paperwork.


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