By Michael Elkins
Tesla (NASDAQ:TSLA) investor, Solomon Chau, filed a lawsuit Thursday against the electric car maker and its CEO, Elon Musk, accusing them of neglecting to tackle complaints about workplace discrimination and harassment, and engendering a "toxic workplace culture."
“This toxic work environment has gestated internally for years, and only recently has the truth about Tesla’s culture emerged, leading to legal action from government regulators and private parties alike,” Chau said in the complaint. “Tesla’s toxic workplace culture has caused financial harm and irreparable damage to the company’s reputation.”
The lawsuit accuses Musk, 11 Tesla board members, and the company of having breached fiduciary duty by failing to address and remedy “Red Flags” concerning internal reports of discrimination and harassment.
Musk “either knew, was reckless, or was grossly negligent in disregarding the illegal activity of such substantial magnitude and duration”, Chau claimed in his complaint.
Tesla has said it does not tolerate discrimination and has taken steps to tackle workers' complaints.