John Deere to pay $99M in right-to-repair settlement
317 points
13 hours ago
| 17 comments
| thedrive.com
| HN
Dead_Lemon
46 minutes ago
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It surprised me that farmers aren't just ditching John Deere for alternatives that respect them. Visiting family on their farm in the early 2000's, they had been selling off their John Deere tractors and replacing them with Massey Ferguson, because they were annoyed with the poor servicing and parts delivery they had with their local shop/dealership. Way before this right to repair stuff happened.
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raxxorraxor
29 minutes ago
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I don't think other modern tractors behave differently to be honest. Deere probably cost a premium in comparison, but I think many farmers lease their work devices today anyway.

But yes, if they would own it, a right to repair would be very welcomed...

If you see a modern tractor on the streets next to a Ferrari, the tractor is probably the more luxurious and expensive vehicle.

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cjrp
14 minutes ago
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Any tariffs on imported tractors? My gut says yes
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halapro
32 minutes ago
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I think a lot of them just are not aware of the issues until they dropped hundreds of thousands of dollars and used the tractors for years
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Barbing
30 minutes ago
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Could that be true over the past decade that we've seen this in the headlines? Wouldn't there be plenty of bellyaching at the feed store?

Maybe they're really reliable and people are just finding out now...

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itbeho
5 hours ago
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I live in a wine region in central Calif where everyone has a tractor. We bought a Kubota, enjoy using it and get a lot of work done with it. We have a neighbor that bought a new John Deere and for about a 3 month period we endured nothing but abuse from him because we didn't buy "American". Then his problems started...
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lifty
2 hours ago
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Did he empathize with you after or he remained bitter?
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dansmith1919
4 minutes ago
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If you make a very rough estimate of the emotional maturity of a person that abuses a neighbor for not “buying American”, I think the answer become reasonably clear
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brikym
1 hour ago
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I'm guessing once he understood his tractor is a lemon he asked his neighbor for a taste of his sweet orange one.
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chasil
12 hours ago
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The complete crack of Deere's firmware in 2022 must have had some impact on this.

https://www.theregister.com/2022/08/16/john_deere_doom/

Edit: 'Sick Codes confirmed that he believes John Deere failed to comply with its GPL obligations. "I'd love for them to come forward and explain how they are in compliance," he said.'

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bri3d
10 hours ago
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I wouldn’t really call that a “complete crack” (although it IS cool). There’s an _awful_ lot more firmware in a car or tractor than the display unit, and arguably it’s one of the less important modules in most architectures. Cracked versions of Deere Service Advisor are much more meaningful to the kinds of repairs farmers perform than firmware exploits are.
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datahack
5 hours ago
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This is woefully inadequate as a remedy. The dollar amount is minuscule and the remedy time limited. Seems like they just got a license to continue business as usual.
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genxy
1 hour ago
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10 years is just about when things start needing a whole lot of attention. Frankly no one should buy something like this unless a whole shelf of repair manuals is available, along with spare parts.
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amelius
2 hours ago
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Isn't there some kind of three-strikes approach which judges can use against repeat offenders?
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Robdel12
9 hours ago
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Woah, childs play money for the amount of pain, lock in, and money they’ve cost farmers.
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mschild
2 hours ago
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Fines like these are simply considered Cost of Doing Business. Part of the reason why I love the GDPR fine structure so much (percentage base).

It has to hurt.

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TylerE
7 hours ago
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Literally. It’s less than a week of profit for JD. Not income, _profit_.
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fiftyacorn
54 minutes ago
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Let me check who the second largest shareholder is - ah its bill gates
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written-beyond
1 hour ago
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Whenever I read John Deere my brain somehow adds Louis Rossman in there too.
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causality0
12 hours ago
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One of the most user-hostile companies on earth. My John Deere lawnmower came with a fuel gauge that runs off a CR2032 that's embedded in epoxy. The battery runs out of charge in about six months and the gauge stops working. If you saw the gauge open and replace the battery it doesn't start working again. If you disconnect the gauge the lawnmower won't start. Replacement gauges are $60.
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userbinator
8 hours ago
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Chances are you might find a compatible replacement from China on Ali and the other usual sites for a fraction of the price.
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M95D
2 hours ago
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In EU, a product such as this would have a 2 year minimum warranty. How long was yours?
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pdpi
1 hour ago
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They might be able to work around that by arguing it’s a consumable, so not a warranty issue.
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M95D
1 hour ago
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Fuel is a consumable, and fuel gauge is also a consumable? You have lots of terrible judges if anyone could seriously consider that argument.
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gambiting
1 hour ago
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Again, it's a misconception(and I'm from the EU). EU law guarantees that for 2 years from purchase(it's actually 6 on most items) the seller has to fix any issues that arise from manufacturing faults. In the first 6 months of ownership, any fault is automatically presumed to be a manufacturing fault, after 6 months the buyer has to prove that it is. That is not the same as a warranty, if your laptop randomly stops working 2 years in you don't automatically get a right to have it repaired unless you can prove it failed because of a manufacturing defect(which as you can imagine, is actually quite hard to prove).

A lot of manufacturers have alligned their warranties to be 2 years long in the EU because they don't want to deal with the above, but it's completely 100% legal to offer a 1 year or 6 months warranty in the EU on any item. Your rights with regards to seller's responsibility are not affected by it.

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dyauspitr
12 hours ago
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That’s wild.They had to go out of their way to not wire it to the 12V.
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M95D
2 hours ago
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They had to go out of their way to make it not work after you replace the battery with a good one.
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b112
6 hours ago
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This is where small claims court can have a HUGE impact.

Where I live, in small claims:

* Lawyers are not allowed

* There is no forced discovery. Sue John Deere, and they cannot ask for endless documents

* There is no way to assign costs on loss. If you lose, you never pay costs for the person you sued (which makes sense -- no lawyers)

* If you don't understand something, typically the judge will act as a mediator and explain it to you.

Yet meanwhile, suing in small claims will typically result in a big company using lawyers, who will try to pretend the above is not true. They will also rack up large costs for the company. In the end, sometimes a lawyer will appear in small claims court beside a company employee. However the company employee will do the talking.

My cost to file is $100. My cost to serve (via courier with tracking + sig) was $10. The company I went after, a fortune 500 company, I suspect spent >$50k on lawyers. While small to the company, it is truly a way to level the playing field.

What I find amusing here is, you could sue for a replacement unit. Explain what you found. Where I am, the max resolution is $30k, so you could easily get a refund for the tractor. Citing this issue while describing all of this, could result in two outcomes.

1) Deere employee claims (in their defense) that a batch of units were defective. They then deliver a fixed unit to you. While not perfect, it would be amusing, because they'll have just spent $50k in paying lawyers, along with making a proper unit.

2) You just claim that the tractor is defective, you can't sell it as it is, except maybe for parts. And you're not sure most of them are usable (weird electronics), and even cite that Deere stuff apparently is designed to break without authorized repairs. So how can you in good faith, even try to sell it to anyone??

So you ask for your time, costs, and full replacement costs with another brand.

Adding your wage/hr is somewhat typical here, for calls, research, sawing it open, all of it.

--

Anyhow.

If #1 is chosen and it breaks again, then you can repeat the whole fun process.

And I do mean it is fun.

$100 + I filled out a 2 page form, and then fedexed it to them. Their lawyers kept pestering me, to which I simply said "No" and "I don't need to give you anything, there's no forced discovery". This too was very satisfying, when I kept in mind how each call to me cost the company probably about $1k.

I mean, literally I'm sure each 5 minute call was around that ballpark. It was sheer joy. (Just don't discuss any aspect of the case in these calls.)

Then there was a pre-trail meeting where I, the company rep, and a retired judge sat. I was told that "nothing said here can ever be used in court", which made it more fun. The system's attempt to resolve before trial. That too was fun, for I got to finally tell the company, over and over, how wrong they were.

Anyhow.

It's a fun process.

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GCUMstlyHarmls
4 hours ago
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>Then there was a pre-trail meeting where I, the company rep, and a retired judge sat.

This is them trying to intimidate you right? Or settle pre-court at least? Not part of the actual process where some retired judge always mediates before trial? It reads as gross.

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tgsovlerkhgsel
3 hours ago
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Many small claims court procedures, at least outside the US, include mandatory mediation that would fit this description, and there is nothing gross about it.

Given that a "retired judge" was present, I assume it was such a mediation meeting (i.e. the retired judge was most likely a neutral, court appointed mediator, whose job is basically to tell both sides to please come to an agreement, and potentially tell one side to pull their head out of their ass and stop being idiots before the court has to tell them that they are being idiots).

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b112
3 hours ago
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Yes, exactly.
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dmos62
11 hours ago
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Hot take: it takes mental gymnastics to think that planned obsolescence is not fraud.
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miki123211
3 hours ago
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I personally like to call it "forced obsolescence."

Forced obsolescence is when the consumer always buys the cheapest product that checks their boxes, regardless of build quality. This forces you to either use cheap parts that you know will break, or leave the market entirely. The consumer may bitch at "planned obsolescence", but when push comes to shove and they're looking for what their next <thing> is going to be, they only look at the price and features, not quality and longevity.

We should be re-framing this in consumer's minds, and list "price divided by warranty" as an important dimension to evaluate a product on.

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AuthAuth
6 hours ago
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Depends how its planned. If its planned to fail but designed in a way thats cheap and easy to replace its ok. Because sometimes it can be the case that to much is spent over engineering a high use part when would be more practical to let it break and replace it every 2 years or so.
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hatthew
9 hours ago
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Sure, if it's truly planned. I think the tricky part tends to be that it's hard to distinguish between "planned obsolescence" and "incidental obsolescence".
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maxerickson
9 hours ago
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Is there a bright line between cost reduction and planned obsolescence?

Obviously a small unreplaceable battery is not a good example for that discussion.

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moring
2 hours ago
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I think there is: It is the line between "not spending extra money to make sure it works" and "spending extra money to make sure it won't work".

There is a related problem with warranty: an inferior third-party replacement part may cause damage to higher-quality original parts. There is a line here between "making sure you don't have to deal with follow-up damage caused by inferior parts" and "preventing the use of inferior parts". This is a bit more blurry because most cases won't be clear-cut, and dealing with them will be a burden on the original manufacturer.

I think it is important that we reward the nice players as much as we punish the bad ones. A blanket "all companies bad" just means that no company has an incentive to be anything less than bad.

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hgomersall
3 hours ago
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I had an interesting situation where we had failure of a Thule bike trailer wheel and could see where the connection-to-the-trailer design had changed from an earlier version (from the company that Thule bought). The wheel functioned the same, but you could see a clear difference which fully explained the failure. I expect it was a cost optimisation, and we only encountered the failure because we used it very heavily.

Edit: they also failed to honour their warranty commitments, but that was secondary.

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jojobas
7 hours ago
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Going out of your way to make sure the gauge doesn't work after the battery is replaced surely is.
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maxerickson
39 minutes ago
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I wonder if the gauge is just a horrible design that uses the battery to keep some memory alive.

Microcontrollers with persistent memory are not expensive, so something like that would just be horrible design, not something you could even try to justify as a cost reduction.

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themafia
3 hours ago
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It's consumer fraud. It's shareholder fraud. It's environmental fraud.

Products like this simply shouldn't be allowed on the market. As if we need to destroy the planet so my Mother can enjoy looking at her 401k balance in the morning.

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silexia
5 hours ago
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Farmer here. We only run equipment made before 2000 and all of our tractors are from the 1980s. We badly need right to repair.
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shiroiuma
4 hours ago
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You should check out Kubota stuff.
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9rx
2 hours ago
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I considered one for my last tractor purchase. The depreciation on them is hard to square. Units are selling or 1/3 of the original price with only a few hundred hours on them.
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mschild
2 hours ago
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Why not purchase used then? 66% discount for a mint condition sounds like a steal.
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9rx
2 hours ago
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That is what brought some interest, but at the same time there are no steals in farming. Although in the end it was largely technical. The M7 wasn't enough frame for my needs, but I didn't really need the HP of the M8 (which is actually a Versatile anyway). Other manufacturers offer models that more closely align with my requirements.
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SilverElfin
12 hours ago
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Seems like a small price for a big company. Shouldn’t there be some higher punitive fine for even trying this tactic? It’s basically zero cost for companies to be abusive.
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adityamwagh
11 hours ago
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Yes there should be. But there won’t be until US stops lobbying and American public elects lawmakers that work for people instead of their own pockets.
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nalekberov
10 hours ago
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Unfortunately most people has a price in this world. Those who can’t be bought are just so rare.
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mayama
6 hours ago
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And people that are likely to not be bought wouldn't enter politics in most cases. To enter and succeed in politics needs ambition and skillset that is diametrically opposite to a honest person.
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user3939382
9 hours ago
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The disgusting part is it’s not even that much money. $20k here, $50k there gets you a lot of political leverage.
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mistrial9
7 hours ago
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no the settlements include many other conditions, but I agree the financial penalties should be larger
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verdverm
13 hours ago
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The second paragraph likely answers some of your immediate questions

> The settlement also includes an agreement by Deere to provide “the digital tools required for the maintenance, diagnosis, and repair” of tractors, combines, and other machinery for 10 years. That part is crucial, as farmers previously resorted to hacking their own equipment’s software just to get it up and running again. John Deere signed a memorandum of understanding in 2023 that partially addressed those concerns, providing third parties with the technology to diagnose and repair, as long as its intellectual property was safeguarded. Monday’s settlement seems to represent a much stronger (and legally binding) step forward.

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westmeal
11 hours ago
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Yeah but it's only for 10 years...
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verdverm
7 hours ago
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it's not, they have to provide the knowhow to 3rd parties so they can carry on indefinitely
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BobbyTables2
8 hours ago
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10 years for the buyer or the manufacturer?

So it’s back to as before in 10 years?

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verdverm
8 hours ago
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The second to last sentence I copied over talks about after 10yrs, basically saying they have to provide the knowhow to 3rd party tool makers and repair technicians, and that this settlement makes that more certain. (as I read it)
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darth_avocado
12 hours ago
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The stock is up 5% today. What’s the catch?
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jabwd
11 hours ago
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They settled, and paid pennies for being able to continue the status quo. Given that the headline is journalistic malpractice at best; and you asking this question kinda proves that.

> While the agricultural manufacturing giant pointed out in a statement that this is no admission of wrongdoing

Welp, gotta sue again in the future, hopefully lobbied laws in place to prevent whatever forced them to settle by then!

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zdragnar
6 hours ago
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The whole point of settling is to end legal action. Admitting wrongdoing will be used as evidence against them by others who weren't party to the original suit. Any future suits will have far higher settlement costs, if plaintiffs are even willing to settle, since there's an admission of guilt right there.

You can thank the plaintiffs and their lawyers for accepting the settlement instead of pursuing a judicial remedy such as an injunction or finding of illegal behavior.

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collingreen
6 hours ago
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It is going to be tough to get me to think the plaintiff is responsible for John Deere the company continuing to be dickheads.

When I hear these kinds of "blame the consumer" apologetics it never resonates with me - I'm just not going to get on board with some hypothetical natural state where corporations are inherently bad like some sort of sick animal and it's on consumers to sacrifice and plan with care in order to help the rest of society deal with them.

Corporations are just big groups of people. If their victims can choose self sacrifice in order to help the group then the corporation people could just as easily do the same and that feels far more just to me.

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tartoran
12 hours ago
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> What’s the catch?

99m is a drop in the bucket. They were probably expecting more.

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explodes
12 hours ago
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IANAL but my understanding with settlements is that It removes the possibility of the defendant risking a judgement of wrongdoing and causing more problems down the road, like having to fix their mistakes.
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bluGill
12 hours ago
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The market doesn't care. It is a big deal to some people here, but to the vast majority it doesn't change a thing (or doesn't seem to) and so the markets don't care.
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anitil
8 hours ago
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There is a premium on risk reduction. I believe this is one of the reasons why companies like to incorporate in Delaware as the courts there are notoriously fast (I'm going off my memory of a Planet Money episode so could be wrong here).
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aucisson_masque
12 hours ago
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The market expected a worst outcome ?
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maest
12 hours ago
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No, all US equities are up after the Iran ceasefire news.

You need to look at Deere stock after taking out the beta to the market.

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jauntywundrkind
11 hours ago
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Anticipating 10.01 years from now, when John Deere sends a new over the air update and the situation goes right back to where it was, with no one having access to their equipment.
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snapetom
10 hours ago
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There was a MoU between the American Farm Bureau and John Deere signed in 2023 that outlined right to repair. This consequently already altered Deere's business model with respect to IP and right to repair, and gave signals that a settlement was coming. In other words, the stock price already accounted for the change. Very few things catches stock prices by surprise in the long term.
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bearjaws
11 hours ago
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Needs another zero, likely made 9 figures in revenue from this scheme.
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shevy-java
11 hours ago
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Good! Wonder if Louis Rossmann already mentioned that.
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skeptrune
10 hours ago
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this is awesome. beyond happy to see it
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mothballed
10 hours ago
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I bought a ~completely mechanical tractor without ECU right under the 25hp cutoff that requires computer and emissions controls to get around this bullshit. The adding of DPF and/or SCR to agricultural diesels gave vendors cover to fuck the customer using the excuse of preventing emissions tampering.
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pnw
10 hours ago
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Up to one third of that $99m goes to attorneys. Named plaintiffs get $25k each and class members get what's left over, which could be anything from $50 to $5k according to ChatGPT.

I wonder if they'll throw in free credit monitoring with that?

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