Tesla investor sues Musk and his board for workplace discrimination

Tesla CEO Elon Musk attends the groundbreaking ceremony for the Tesla Shanghai Gigafactory in Shanghai, China January 7, 2019. REUTERS/Aly Song/File Photo

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June 17 (Reuters) – A shareholder of Tesla Inc TSLA.O has sued the electric car maker, Chief Executive Elon Musk and his board, accusing them of failing to address workplace discrimination and harassment claims and engender a “toxic work culture”. “

Thursday’s lawsuit is the latest against Tesla, accused of racial discrimination and sexual harassment at its factories. Read more

“Tesla has created a toxic work culture based on racist and gender-based abuse and discrimination against its own employees,” said investor Solomon Chau.

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“This toxic work environment has been growing internally for years, and it’s only recently that the truth about Tesla’s culture has emerged,” he added in the lawsuit.

“Tesla’s toxic work culture has caused financial harm and irreparable damage to the company’s reputation.”

Tesla did not immediately respond to an email seeking comment outside of regular U.S. business hours.

Kendall Law Group PLLC, the attorneys representing Chau, were unavailable outside of regular business hours in the United States.

Tesla has said it does not tolerate discrimination and has taken steps to address worker complaints.

The lawsuit accuses the defendants — Musk, 11 Tesla board members and the company — of breaching their fiduciary duty by failing to address and remedy red flags about internal reports of discrimination and harassment .

This resulted in Tesla losing high-quality employees and costs defending cases and settling fines for violations, the lawsuit said.

The case is Chau et al v. Musk et al, US District Court, Western District of Texas (Austin), 1:22-cv-00592.

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Reporting by Sayantani Ghosh and Kevin Krolicki in Singapore and Abinaya V in Bengaluru; Editing by Kim Coghill

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