Shareholder sues Elon Musk for racism and sexual harassment at Tesla

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The action was the latest against Tesla, which has been hit with a series of sexual harassment lawsuits and black employees complaining of rampant racism.

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

The lawsuit – filed Thursday by plaintiff Solomon Chau in Texas, where Tesla is headquartered – argues that an unresolved “toxic work culture” at the company has caused “irreparable” reputational damage and harm financial.

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The action was the latest against Tesla, which has been hit with a series of sexual harassment lawsuits and black employees complaining of rampant racism.

In February, the state of California sued Tesla for alleged discrimination and harassment of black employees at its Fremont factory near San Francisco, claiming in a complaint that the company had created a “workplace at racial segregation”.

Thursday’s court filing said a “toxic environment has formed internally for years and the truth about Tesla’s culture only recently emerged, leading to actions by regulators and regulators. individuals”.

The lawsuit claims that Musk, who is Tesla’s chief executive, and his 11 board members ignored several ‘red flags’, leading to the departure of many highly qualified employees and triggering a series of costly legal proceedings. .

“These wrongs caused significant damage to Tesla’s reputation, goodwill and reputation in the business community,” the lawsuit states, and “exposed Tesla to hundreds of millions of dollars in potential liability for breach. state and federal laws.

In another lawsuit last year, Tesla was ordered to pay $137 million 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 against black employees who claim to have been victims of racial insults and inappropriate sexual remarks by colleagues or superiors, are in progress.

Tesla, which has hardly responded to requests from journalists since the end of 2020, did not respond to a request from AFP.

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

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