On June 17, a Tesla shareholder sued the company, along with 11 board members and CEO Elon Musk, for creating and maintaining a toxic work culture rife with racism and sexism. The defendants, the suit alleges, breached their fiduciary duty by failing to address and remedy abundant red flags concerning discrimination and harassment. “Tesla’s toxic workplace culture has caused financial harm and irreparable damage to the company’s reputation,” the lawsuit alleges.

That could be putting it mildly. The lawsuit, Chau et al v. Musk  filed in the U.S. District Court for Western District of Texas, is just the latest in a string of legal actions against Tesla alleging harassment, discrimination and abuse of workers at its facilities. According to Chau, the company’s bad behavior caused it to lose high-quality employees and to incur substantial costs for defending cases and settling fines for violations.

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