Elon Musk subpoenas former Twitter CEO Jack Dorsey, Tesla loses fight against racism

0

The subpoena sought documents and communications about Twitter’s use of mDAU, a measure of active users on its platform.

Musk alleged the company defrauded him by hiding the number of fake accounts in its regulatory filings, which he used to value the company.

Twitter has denied Musk’s spamming allegations.

Musk also wanted documents and communications regarding alternative active user metrics the company has considered and information about the use of mDAU in executive compensation and annual goals.

Twitter declined to comment.

Dorsey had backed Musk’s takeover bid for Twitter as the pair agreed on the need for more transparency for its algorithm and to give users more control over the content they see.

Dorsey also tweeted that he thinks Twitter is being held back by the advertising model and Musk said Twitter should rely more on subscription fees and services such as user-to-user money transfers.

Musk and Dorsey had discussions in March about Musk joining Twitter’s board before Musk revealed he had acquired a 9.1% stake in Twitter. Musk accepted a seat on the board, but before starting his term he changed course and offered to buy the company.

Shares of Twitter fell 2.5% to $42.89 on Monday evening US time in trade.

REQUEST FOR RACISM

Meanwhile, a California administrative agency has refused to look into Tesla’s claim that the state civil rights watchdog suing the company for racial bias at an assembly plant is rushing to sue the workers. businesses without conducting a thorough investigation.

In a letter, the California Office of Administrative Law denied Tesla’s motion, filed in June, to determine whether the Department of Civil Rights (DCR) had passed “clandestine regulations” that flout requirements it must meet before to sue employers.

The letter obtained by Reuters is dated August 8 but was received by the department last week.

The OAL, which reviews state agency regulations and can recommend changes, did not give a reason for the denial and said Tesla could still pursue its claims in court.

The department, in a pending lawsuit filed in February, claims Tesla’s flagship factory in Fremont, California, was a racially segregated workplace where black employees were harassed and discriminated against in terms of work assignments, discipline and compensation. Read more

A Tesla representative, who has denied any wrongdoing in the racial bias case, had no immediate comment.

A DCR spokesperson did not immediately respond to a request for comment. The agency was called the Department of Fair Employment and Housing before changing its name last month.

Tesla’s petition to the OAL was an attempt to restrict the department’s authority to prosecute discrimination cases by requiring it to take additional steps before proceeding, such as providing companies with detailed explanations of alleged violations of the law and make efforts to settle outside of court.

In the pending lawsuit, Tesla argued that the DCR filed the lawsuit without first notifying the company of all claims or giving it a chance to settle.

A California state judge is scheduled to hold a hearing on Wednesday U.S. time on Tesla’s motion to dismiss the case.

The lawsuit is one of several pending in California courts that accuse Tesla of tolerating discrimination and sexual harassment at its factories.

In April, a state judge reduced a jury verdict for a black worker who alleged racial harassment from $137 million to $15 million.

The worker, Owen Diaz, rejected the reduced award and opted for a new trial, scheduled for March 2023.

Reuters

Share.

Comments are closed.