HomeTechMusk Sued by Tesla Shareholder Over Racism, Sexual Harassment Complaints

Musk Sued by Tesla Shareholder Over Racism, Sexual Harassment Complaints


A Tesla shareholder has filed authorized proceedings towards Elon Musk and the corporate’s board of administrators, accusing them of ignoring worker complaints of racism and sexual harassment.

The lawsuit — introduced ahead Thursday by complainant Solomon Chau in Texas the place Tesla is headquartered — argues that an unaddressed “poisonous office tradition” on the firm has brought about “irreparable” reputational harm and monetary hurt.

The motion was the newest towards Tesla, which has been hit by a spate of sexual harassment lawsuits and Black staff complaining of rampant racism.

In February, the state of California sued Tesla over alleged discrimination and harassment towards Black staff at its Fremont plant close to San Francisco, saying in a criticism that the corporate had created a “racially segregated office.”

Thursday’s court docket submitting said {that a} “poisonous atmosphere took form internally for years and the reality about Tesla’s tradition has solely not too long ago emerged, resulting in actions by each regulators and personal people.”

The lawsuit asserts that Musk, who’s Tesla’s govt director, and its 11 board members ignored a number of “purple flags”, which resulted within the departure of quite a few extremely certified staff and set off a collection of pricey authorized proceedings.

“These wrongs resulted in vital damages to Tesla’s repute, goodwill, and standing within the enterprise neighborhood”, the lawsuit states, and “uncovered Tesla to tons of of thousands and thousands of {dollars} in potential legal responsibility for violations of state and federal legislation.”

In one other lawsuit final 12 months, Tesla was ordered to pay $137 million (roughly Rs. 1,070 crore), plus curiosity, to a former elevator operator at its Fremont manufacturing unit for turning a blind eye to racism. Earlier this 12 months, the penalty was lowered to $15 million.

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Different authorized proceedings, particularly from Black girls staff who declare to have been victims of racial slurs and inappropriate sexual remarks by colleagues or superiors, are underway.

Tesla, which has barely responded to requests from journalists since late 2020, didn’t reply to a request from AFP.

Musk was additionally sued on Thursday by an investor in dogecoin, who says he misplaced cash after investing within the cryptocurrency, and described himself as an “American citizen who was defrauded” by what he known as a “Dogecoin Pyramid Scheme.”


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