Tesla and a former employee have agreed to settle a closely watched lawsuit that shed light on the carmaker’s treatment of Black workers. Lawyers for Tesla and Owen Diaz, a former employee at the Fremont, Calif. factory, did not disclose the settlement terms in a legal filing on Friday. Lawrence A. Organ, Diaz’s lawyer, stated in an email that “the parties have reached an amicable resolution of their disputes,” without further comment.
In the previous year, a federal court jury in San Francisco awarded Diaz $3.2 million after he provided evidence of being harassed by supervisors at Tesla’s factory, including racial slurs and a racist caricature drawn near his work station. The jury found that Tesla failed to address racism at the factory.
Diaz appealed the $3.2 million award, claiming it was inadequate compensation for the psychological harm he suffered, including loss of sleep and damaged relationships. A judge had previously ruled that a $137 million award from an earlier trial was excessive. The second trial focused on the appropriate damages for Diaz.
In a prior decision, Judge William H. Orrick of U.S. District Court criticized Tesla’s behavior but deemed $3.2 million as sufficient compensation. Tesla’s lawyers denied allegations of failing to address the harassment, stating that the company had clear policies against discriminatory behavior. They did not provide a comment on the settlement.
