Tesla settles long-running racial discrimination court battle with former worker

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Mariella Moon has been a night editor for Engadget since 2013, covering everything from consumer technology and video games to strange little robots that could operate on the human body from the inside one day. She has a special affinity for space, its technologies and its mysteries, though, and has interviewed astronauts for Engadget.

Owen Diaz's lengthy court battle against Tesla is officially over, now that both parties have agreed on a settlement. Attorney Lawrence Organ, Diaz's lawyer, toldthat that the"parties have reached an amicable resolution of their disputes," but that the"terms of the settlement are confidential.

The former elevator operator famously sued the automaker for enabling a racist workplace, saying that he faced discrimination"straight from the Jim Crow era" as a Black individual. He said his fellow workers left left drawings of swastika and racist graffiti, such as ones of Inki the Caveman, on his workspace and around Tesla's Fremont assembly plant.

In 2021, a San Francisco court ordered Tesla to pay $137 million in damages to its former worker, which was one of the highest amounts awarded to a plaintiff suing on the basis of discrimination. However, a judge during the appeals that followed found the amount excessive and lowered it to $15 million, even though he upheld the original jury's verdict. The parties went back into trial after Diaz refused the lowered amount, but a jury lowered the damages Tesla must pay even further to $3.

 

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