Tesla Inc. TSLA filed a counter suit against the California Civil Rights Department lawsuit on Thursday regarding alleged racial discrimination and harassment at the company between 2015 and 2019.
What Happened: After receiving hundreds of complaints from workers, the state agency, known as the California Department of Fair Employment and Housing, filed a complaint against Tesla in the Alameda County Superior Court on February 9, the agency disclosed in a Feb. 16 release.
What is a Recall? Elon Musk Says the term 'Outdated And Inaccurate' For Tesla's Latest NHTSA Order, Prefers This Instead.
In the lawsuit, DFEH said that African American workers at Tesla had experienced discrimination, harassment, and or retaliation based on race. In a blog post, Tesla called out DFEH for its misguided lawsuit.
Why It's Important: In the countersuit filed on Thursday, Tesla said that the CRD neither provided adequate notice of the particulars of its alleged discriminatory conduct nor conducted a fair and neutral investigation.
The result is incompatible with the principles of fair notice, neutral investigations, good faith conciliation and mandatory pre-suit mediation embedded in the FEHA, according to the electric vehicle maker.
It said that the public interest demands that CRD be held accountable for its underground rulemaking in violation of the APA.
A former Black contractor named Owen Diaz, who accused the company of blind eye to discrimination and racial abuse at the same plant, was ordered to pay $137 million in damages.
Price Action: Tesla shares were down 1.33% at $284.75 in premarket trading on Friday, according to Benzinga Pro data.