Tesla Prevails in Racial Bias Class Action but Now Confronts Hundreds of Lawsuits | Carscoops

      A judge in California announced that a 2017 lawsuit regarding alleged racial discrimination cannot continue as a class action.

      A California judge has determined that Tesla employees are unable to file a class action for discrimination.

      Many of the plaintiffs reportedly cannot afford to take time off work to testify.

      Attorneys caution that Tesla may now confront hundreds of individual lawsuits.

      Tesla has had considerable experience in court, particularly with class-action lawsuits in the United States. Over the years, the company has spent millions settling numerous cases, but this week marked an unusual positive development for the electric vehicle manufacturer.

      A California state judge has ruled that a group of African American factory workers cannot proceed with a class action lawsuit against Tesla concerning claims of racial discrimination, giving the company a temporary break in a prominent case that has been ongoing for years.

      What Changed in Court?

      The lawsuit, initially brought by former assembly-line worker Marcus Vaughn, alleged that Black employees at Tesla's Fremont, California plant faced racial discrimination, including slurs and nooses displayed at their workstations.

      The case was initially certified as a class action in 2024, with a trial set for April 2026. However, California Superior Court Judge Peter Borkon indicated earlier this week that the 2017 lawsuit can no longer move forward as a class action, pointing out that many of the 200 randomly chosen workers to testify have been unwilling to participate.

      Borkon stated that he could no longer be confident that the experiences of a smaller group of workers could represent the entire class.

      One of the attorneys representing the plaintiffs, Lawrence Organ, mentioned that many individuals included in the class action are low-income workers who cannot afford to be absent from work to provide testimony.

      More Lawsuits Could Follow

      Despite the class action not being certified, Tesla remains in trouble. The plaintiffs' co-lead attorney, Bryan J. Schwartz, indicated that they plan to pursue hundreds of individual lawsuits. More than 500 have already been filed, and ultimately over 900 separate lawsuits alleging racial discrimination could be pursued against Tesla.

      “Tesla has jumped out of the frying pan and into the fire with this decertification, because they are now facing hundreds of victims of race harassment seeking damages in their own suits,” Schwartz told KQED.