Tesla Inc (NASDAQ: TSLA) cannot halt The California Department of Fair Employment and Housing’s (DFEH) lawsuit alleging widespread race discrimination at an assembly plant, Reuters reported on Wednesday, citing a judge.
What Happened: The electric automaker has challenged DFEH’s ability to sue employers after the agency in its lawsuit claimed Tesla's flagship Fremont plant was racially segregated and Black workers were harassed and discriminated against in terms of job assignments, discipline and pay.
Tesla could chase its claim that the agency failed to meet various requirements before suing the electric vehicle maker in February, but that staying the lawsuit would be inappropriate, California Superior Court Judge Evelio Grillo said in Oakland during a hearing on Wednesday.
Tesla’s lawyers had argued that the case should be put on hold so that it could get an opportunity to settle the claims outside of court, but the judge ruled against it, saying he lacked the power to do that.
“We cannot typically order an agency to exercise its discretion in a particular way,” the report said, citing the judge.
“That’s kind of a big no-no.”
Tesla has said the lawsuit was politically motivated and denied any wrongdoing.
See Also: Tesla Was Ordered To Pay Up $137M In Racism Lawsuit — Now, A Judge Says That's 'Too High'
Why It Matters: The electric vehicle maker faces many lawsuits in California courts that accuse it of tolerating discrimination and sexual harassment at its factories.
Tesla was also ordered to pay $15 million to a former Black elevator operator in a racism lawsuit. The fine was lowered to $137 million.
Price Action: Tesla closed 1.25% higher at $725.6 on Wednesday, according to data from Benzinga Pro.
