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No respite for Elon Musk, Tesla to face class action lawsuit by 6,000 workers for racial bias

A California state judge has tentatively ruled that nearly 6,000 African-American factory workers can proceed with a group lawsuit against Tesla for alleged failure to address widespread race discrimination and harassment at its Fremont plant, as per a Reuters report.

Judge Noel Wise in Oakland stated in a written order issued on Wednesday that the lawsuit raises common questions concerning whether Tesla was aware of the alleged misconduct and failed to take preventive measures.

The lawsuit was initiated by Marcus Vaughn, a former assembly line worker, in 2017. Vaughn alleges that African-American factory workers faced various forms of racist behavior, including slurs, graffiti, and nooses hung at their workstations. Tesla has not yet responded to requests for comment on the ruling.

Lawrence Organ, Vaughn’s lawyer, expressed satisfaction with the ruling and looks forward to preparing for trial. He highlighted the numerous complaints over time, suggesting Tesla’s failure to prevent racial harassment of its African-American employees.

Tesla maintains a zero-tolerance policy towards workplace harassment and asserts that it has terminated employees involved in racial harassment. The tentative ruling precedes a hearing scheduled for Friday, where Tesla can challenge Wise’s decision.

The ruling poses a significant setback for Tesla, potentially exposing the company to a substantial financial judgment. The class action includes individuals who self-identified as African-American and worked at the Fremont factory since November 2016.

Judge Wise intends to proceed with a trial in October, coinciding with another trial involving similar claims against Tesla by a California state civil rights agency. Additionally, Tesla faces race-bias allegations in federal court brought by the U.S. Equal Employment Opportunity Commission, with Tesla seeking dismissal or a pause pending resolution of other lawsuits.

Furthermore, Tesla is appealing a $3.2 million jury verdict awarded to an African-American former elevator operator at the Fremont plant in a separate racial harassment lawsuit. The worker, Owen Diaz, initially won a $137 million verdict in 2021, but a judge ordered a retrial, deeming the award excessive.

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