(Reuters) – A Tesla Inc. shareholder sued the electric car maker, CEO Elon Musk, and its board, accusing them of failing to address complaints of discrimination and harassment in the workplace and creating a “toxic workplace culture.”
Thursday’s trial is the latest against Tesla, which has been accused of racial discrimination and sexual harassment in its factories.
“Tesla has created a toxic workplace culture based on racist and sexist abuses and discrimination against its own employees,” said investor Solomon Chau.
“This toxic work environment has been lingering internally for several years, and only recently has the truth about Tesla̵7;s culture emerged,” he added in the complaint.
“Tesla’s toxic workplace culture has caused financial damage and irreparable damage to the company’s reputation.”
Tesla has said it does not tolerate discrimination and has taken steps to address workers’ complaints.
The trial accuses the defendants – Mr Musk, 11 Tesla board members and the company – of violating their duty of confidentiality by failing to address and address the red flags regarding internal reports of discrimination and harassment.
This caused Tesla to lose high-quality employees and incur costs to defend cases and settle fines for violations, it is stated in the lawsuit.
The case is Chau et al v. Musk et alU.S. District Court, Western District of Texas (Austin.