The long-running lawsuit between Owen Diaz and Tesla ended in a settlement between the parties. Diaz’s lawyer, Lawrence Organ, told CNBC that “the parties have reached an amicable settlement of their differences,” but “the terms of the agreement are confidential.” Thus, the public will not know how much Diaz will receive after he was initially awarded $137 million in compensation, which was later significantly reduced to $3.2 million.
A former elevator operator filed a lawsuit against the automaker for maintaining a racist work environment, claiming that as an African-American he was subjected to discrimination that was “straight out of the Jim Crow era.” He said that his coworkers left swastika drawings and racist graffiti, such as images of Inky, the Caveman, in his workplace and throughout Tesla’s Fremont plant. Diaz also claimed that he and other African-American employees were subjected to racial slurs, and the company failed to take action despite repeated complaints.
In 2021, a San Francisco court ordered Tesla to pay its former employee $137 million in compensation, one of the largest amounts awarded to a plaintiff in a discrimination case. However, at the appeal stage, the judge found this amount excessive and reduced it to 15 million, upholding the jury’s original decision. The parties returned to court after Diaz refused the reduced amount, but the jury further reduced the compensation to be paid by Tesla to $3.2 million. Diaz’s lawyer then stated that his client had been improperly attacked by the defense and that they had already requested a new trial due to improper behavior. It seems that since then the parties have agreed to negotiate behind closed doors.
Although Diaz’s case has ended, the Authority also represents Marcus Vonn, who has filed another lawsuit against the automaker for racial harassment. Vonn called Tesla’s Fremont plant a “hotbed of racist behavior” and last year asked the court to grant him class action status to add 240 African-American colleagues to his lawsuit.
