Elon Musk Sued by Tesla Shareholder Over Racism, Sexual Harassment Complaints

The action was the latest against Tesla, which has been hit by a spate of sexual harassment lawsuits.

By Gadgets 360 Staff With Inputs From AFP | Updated: 17 June 2022 18:28 IST

Elon Musk Sued by Tesla Shareholder Over Racism, Sexual Harassment Complaints

Photo Credit: Reuters

The lawsuit claims that Musk, Tesla's 11 board members ignored several red flags

Highlights

Tesla has not responded to the media regarding slew of recent allegations
It previously ordered to pay its former elevator operator $15 million
Elon Musk was also sued by an investor in Dogecoin on Thursday

A Tesla shareholder has filed legal proceedings against Elon Musk and the company's board of directors, accusing them of ignoring employee complaints of racism and sexual harassment.

The lawsuit — brought forward Thursday by complainant Solomon Chau in Texas where Tesla is headquartered — argues that an unaddressed "toxic workplace culture" at the company has caused "irreparable" reputational damage and financial harm.

The action was the latest against Tesla, which has been hit by a spate of sexual harassment lawsuits and Black employees complaining of rampant racism.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

In February, the state of California sued Tesla over alleged discrimination and harassment against Black employees at its Fremont plant near San Francisco, saying in a complaint that the company had created a "racially segregated workplace."

Thursday's court filing stated that a "toxic environment took shape internally for years and the truth about Tesla's culture has only recently emerged, leading to actions by both regulators and private individuals."

The lawsuit asserts that Musk, who is Tesla's executive director, and its 11 board members ignored several "red flags", which resulted in the departure of numerous highly qualified employees and set off a series of costly legal proceedings.

Elon Musk Sued for $258 Billion Over Alleged Dogecoin Pyramid Scheme

"These wrongs resulted in significant damages to Tesla's reputation, goodwill, and standing in the business community", the lawsuit states, and "exposed Tesla to hundreds of millions of dollars in potential liability for violations of state and federal law."

In another lawsuit last year, Tesla was ordered to pay $137 million (roughly Rs. 1,070 crore), plus interest, to a former elevator operator at its Fremont factory for turning a blind eye to racism. Earlier this year, the penalty was reduced to $15 million.

Other legal proceedings, in particular from Black women employees who claim 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, did not respond to a request from AFP.

Musk was also sued on Thursday by an investor in dogecoin, who says he lost money after investing in the cryptocurrency, and described himself as an "American citizen who was defrauded" by what he called a "Dogecoin Crypto Pyramid Scheme."

Is PS Plus better than Xbox Game Pass now? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.