Tesla has quietly reached a legal settlement with the family of Johna Story, a 71-year-old pedestrian struck and killed by a Model Y operating under "Full Self-Driving" (FSD) software on November 28, 2023, on an Arizona highway. The agreement, confirmed on Friday, June 26, 2026, avoids a public trial. Story had stepped out of her vehicle to direct traffic away from an earlier multi-car pileup triggered by severe, blinding sun glare. The fatal crash was the first known pedestrian fatality linked to FSD and triggered a federal defect investigation by the National Highway Traffic Safety Administration (NHTSA). In March 2026, regulators escalated that probe into a formal Engineering Analysis covering 3.2 million Tesla vehicles. The financial terms of the settlement remain strictly confidential. Attorney Dustin Birch, representing Story’s daughter, stated his client was "happy to put this behind her." The resolution follows a pattern of Tesla settling at least six separate high-profile automated-driving lawsuits out of court after a Florida jury found Tesla 33% liable for an Autopilot crash and handed down a $243 million judgment.