By Rachel Graf | Bloomberg
Elon Musk and his companies are embroiled in dozens of lawsuits, ranging from fatal crashes blamed on Tesla Inc.’s Autopilot system to civil rights complaints over the treatment of employees.
Tesla’s board and Musk were hit June 6 with another suit over his $56 billion pay package that a judge voided in January — ahead of a June 13 shareholder proxy vote on whether the company should resurrect it.
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Musk, who has a history of sparring with regulators, also faces government investigations into his companies that could result in more lawsuits or even criminal prosecutions.
Bloomberg News has identified more than half a dozen ongoing legal fights in which Musk is a defendant or a plaintiff, as well as about a dozen others involving his companies. Here’s a breakdown of the major legal battles faced by the world’s third-richest person and his companies:
TESLA INC.
Autopilot Crashes, California and Florida state and federal courts
The electric-car maker faces at least half a dozen wrongful death claims over fatal crashes blamed on its Autopilot driver-assistance system.
At stake: A finding that Tesla is culpable for deaths would imperil Musk’s quest to lead the way for fully self-driving cars to cruise down busy city streets and freeways.
Race Discrimination, California state and federal courts
Tesla faces multiple suits over allegations of racism on its production floor filed by workers, California’s civil rights department and the US Equal Employment Opportunity Commission.
At stake: The automaker could have to pay damages and foster a more inclusive environment.
Pay Package, Delaware Chancery Court
Musk is poised to appeal a judge’s decision voiding his Tesla pay package as excessive, while Tesla plans to ask shareholders at the company’s June 13 annual meeting to ratify the same compensation plan approved six years ago. A new suit alleges Musk is trying to strong-arm shareholders into resurrecting the record-setting pay package through a proxy vote.
At stake: Musk has suggested the largest-ever executive pay package is necessary for him to have “the right amount of voting influence at Tesla,” so he can grow it to be a leader in artificial intelligence and robotics.
Anti-Union Tweet, federal appeals court in New Orleans
A 17-judge panel is reviewing a finding by the National Labor Relations Board that Musk illegally threatened workers with the loss of benefits if they unionized.
At stake: A ruling condemning the CEO’s commentary on social media would be a comeuppance for Musk and a morale boost for labor activists who are trying to organize Tesla workers.
Drug Use, Delaware Chancery Court
A shareholder suit alleges that Musk’s use of illicit recreational drugs threatens Tesla’s business, including by apparently influencing his sometimes erratic behavior online.
At stake: The lawsuit seeks closer supervision of Musk’s social media posts about Tesla, which are already supposed to be vetted under an agreement he reached in 2018 with the Securities and Exchange Commission and unsuccessfully challenged all …read more
Source:: The Mercury News – Entertainment
