Tesla settles long-running racial discrimination court battle with former worker


Owen Diaz’s prolonged court docket battle in opposition to Tesla is formally over, now that each events have agreed on a settlement. Legal professional Lawrence Organ, Diaz’s lawyer, advised CNBC that that the “events have reached an amicable decision of their disputes,” however that the “phrases of the settlement are confidential.” If you happen to’ve been following this case for some time now, meaning you will not get to learn the way a lot Diaz is getting after the huge $137 million in damages he was initially awarded obtained dramatically lowered to $3.2 million.

The previous elevator operator famously sued the automaker for enabling a racist office, saying that he confronted discrimination “straight from the Jim Crow period” as a Black particular person. He mentioned his fellow staff left left drawings of swastika and racist graffiti, akin to ones of Inki the Caveman, on his workspace and round Tesla’s Fremont meeting plant. Diaz additionally mentioned that he and different Black staff had been subjected to racial slurs, and that the corporate failed to handle thes behaviors regardless of repeated complaints.

In 2021, a San Francisco court docket ordered Tesla to pay $137 million in damages to its former employee, which was one of many highest quantities awarded to a plaintiff suing on the premise of discrimination. Nonetheless, a choose throughout the appeals that adopted discovered the quantity extreme and lowered it to $15 million, although he upheld the unique jury’s verdict. The events went again into trial after Diaz refused the lowered quantity, however a jury lowered the damages Tesla should pay even additional to $3.2 million. On the time, Diaz’s lawyer mentioned he was wrongly attacked by the protection and that that they had already requested a brand new trial attributable to misconduct. It seems to be like each events have since agreed to barter behind closed doorways.

Whereas Diaz’s case is finished, Organ additionally represents Marcus Vaughn, who filed another lawsuit against the automaker for racial harassment. Vaughn referred to as Tesla’s Fremont plant a “hotbed for racist behavior” and petitioned the court docket final yr to present his lawsuit class action status in order that he might add 240 Black colleagues to his criticism.

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