As big as a company Tesla is, it is not safe from its fair share of controversies and lawsuits. Elon Musk’s disputed reputation sometimes paints a similar picture for his companies. From cases over car manufacturing faults and spying on employees to violating labor laws, the company is fighting it all (quite literally).
A former black employee at Tesla recently rejected a $15 million payout in his lawsuit against the car company. The elevator operator at Tesla Inc’s flagship assembly plant in California rejected the award in his case alleging racial abuse by coworkers.
Plaintiff rejects payout
Following his rejection, the door opened for a new trial after the Judge slashed a $137 million jury verdict. The lawyers of the plaintiff Owen Diaz, who sued Tesla in 2017, turned down the Judge’s award in a brief filing in federal court in San Francisco.
In a statement, they said that the compensation was unfair and did not guarantee the prevention of future misconduct by the company. His lawyers also said that they rejected the court’s ‘recessive reduction’ and asked for a new trial.
They added that Diaz is asking the jury to re-evaluate what Tesla did to him and provide an accurate compensation. The electric car company is yet to issue a comment on the matter. The US District Judge William Orrick lowered the jury award to $15 million in April 2022 and also rejected Tesla’s motion for a new trial, which was conditioned on Diaz’s acceptance of the lower award.
The Judge declined Diaz’s motion for permission to ‘appeal’ that ruling and gave him two weeks to accept the decreased award or agree to a new trial.
The American company faces over 1,000 lawsuits, out of which 200 are in China alone. Last week, a Tesla shareholder accused Musk and the board of directors of cultivating a toxic work environment and neglecting workers’ complaints.
Musk himself is also facing multiple lawsuits. A crypto investor sued him for promoting the ‘Dogecoin pyramid scheme.’ He’s also being sued for sexual misconduct during a flight.