Legal observers noted that Tesla is taking a page from Activision Blizzard’s playbook by pitting federal and a California state agency against each other, according to Bloomberg.
When sued by the California Department of Fair Employment and Housing (DFEH) which alleged sexual harassment culture went all the way to the top, Activision executives contested the suit and were eventually able to settle with the U.S. Equal Employment Opportunity Commission (EEOC) instead for $18 million.
The DFEH then appealed the decision, saying the settlement undermined the agency’s own harassment claims.
Tesla has performed a similar set of moves in its racial discrimination case from the DFEH, which it called “misguided,” by demonizing the case and stirring what it calls a “turf war” between the DFEH and EEOC.
In a court filing earlier this month, Tesla wrote, “DFEH ignored its statutory obligations and rushed to file suit against Tesla… perhaps out of fear that the EEOC would be the first to settle with Tesla.”
Tesla Asks Judge to Reduce ‘Staggering’ $137 Million Payout in Racism Case https://t.co/4m4XqlHJ6q
— TeslaNorth.com (@RealTeslaNorth) November 17, 2021
Lauren Teukolsky, founder and owner of plaintiffs’ firm Teukolsky Law, said that companies facing multiple suits may look for the best settlement, noting that Tesla’s move to follow Activision’s strategy makes sense.
Teukolsky said, “I can totally see why Tesla would want to take a page from the Activision playbook.” Teukolsky continued, “We now know who the weaker plaintiff is.”
The news also comes amidst a larger shakeup at DFEH, which may even give Tesla an edge in defending itself against an alleged culture of racism.
Recently, California Governor also fired the DFEH’s chief counsel Janette Wipper, and assistant chief counsel Melanie Proctor resigned in protest of the decision.
