Tesla Inc (NASDAQ:TSLA, ETR:TL0) will have to face a class action claim from thousands of black employees over allegations of discrimination and harassment, a judge has ruled.
Some 6,000 employees from the company’s Fremont plant in California can sue Tesla over its failure to address such allegations, state superior court judge Noel Wise said on Thursday.
In a written order, Wise said the lawsuit presents questions over whether Tesla was aware of such alleged misconduct and refused to take steps in addressing it.
Marcus Vaughn, the named plaintiff, initially sued the electric vehicle giant in 2017, alleging black factory workers at the site faced a range of racist conduct at work.
Tesla has previously said it does not tolerate such harassment at its sites and that those found to have been involved were fired.
Though Tesla will have the chance to contest Wise’s ruling on Friday, the decision to allow the employees to sue potentially opens the door for a multimillion-dollar judgment.
Wise said a trial would likely be held in October, as a similar lawsuit against Tesla from a California state civil rights agency is also heard.
These add to race bias claims being brought by the US Equal Employment Opportunity Commission against Tesla in federal court in California.