A federal jury in San Francisco on Monday ordered Tesla Inc to pay about $3.2 million to a black former employee after finding that the electric car maker failed to prevent severe racial harassment at its flagship assembly plant in California, Reuters reported.
The verdict was handed down after a week-long trial. The lawsuit was filed in 2017 by plaintiff Owen Diaz, who was awarded $137 million by another jury in 2021.
He opted for a new trial on damages after a judge agreed with a jury that Tesla was liable, but significantly reduced the award to $15 million.
Diaz accused Tesla of inaction when he repeatedly complained to executives that workers at the Fremont, California plant often used racial slurs and scrawled swastikas, racist caricatures and epithets on walls and in workplaces.
On Monday, a jury awarded Diaz, who worked as an elevator operator, $175,000 in punitive damages and $3 million in punitive damages to punish and deter future wrongdoing.
Bernard Alexander, Diaz’s attorney, urged jurors during closing arguments Friday to award him nearly $160 million in damages and send a message to Tesla and other major companies that they will be held accountable for failing to address discrimination.
“Mr. Diaz’s view of the world changed forever,” Alexander said. “This is what happens when you take away a person’s security.”
Tesla attorney Alex Spiro denied that Diaz was a conflicted employee who exaggerated his claims of emotional distress and said his attorneys failed to prove any serious and lasting harm to Tesla.
“They’re just throwing numbers at the screen like it’s some kind of board game,” Spiro said.
The company said it does not tolerate discrimination in the workplace and takes employee complaints seriously.
Diaz testified last week, tearfully recounting various incidents that occurred during the nine months he worked at the Fremont plant. Diaz said the work made him anxious and strained his relationship with his son, who also worked at the plant.
Tesla’s lawyers pointed to inconsistencies in Diaz’s testimony and repeatedly raised the fact that he did not submit written complaints to supervisors. Diaz said he complained verbally to managers numerous times and discussed his grievances with Tesla HR representatives.
The electric car maker faces similar allegations of tolerating racial discrimination at its Fremont plant and other workplaces.
Source: Hot News
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