Shareholders interested in corporate diversity and inclusion practices and workplace culture are turning more toward litigation as a tool to hold companies accountable.
Lawsuits from shareholders claiming their investments are threatened by bad work culture present a new realm of liability for companies that previously could’ve handled those allegations through arbitration and non-disclosure agreements. Unlike many employees, shareholders typically aren’t bound by these types of agreements.
A shareholder suit against Tesla Inc. earlier this month is the latest example of this emerging tactic. The suit accuses the electric-vehicle maker’s officers and directors of allowing a “toxic workplace culture” to fester at the company, exposing Tesla to potential liability.
The case stems from allegations of racial discrimination and harassment at Tesla’s factory near San Francisco, the subject of separate litigation from California’s Department of Fair Employment and Housing.
Mike Delikat, an employer-side attorney at Orrick Herrington & Sutcliffe LLP, said the bump in this type of shareholder lawsuit has pushed his practice more toward securities litigation.
Delikat is among a group of employment attorneys whose work now focuses on reducing corporate liability for shareholder actions.
“These things have now become much more than just individual employment claims, they’ve become...
A VIRAL graphic circulating on social media claims that Peter Obi, presidential candidate of the Nigeria Democratic Congress (NDC), said his son is gay and advocated for the legalisation of same-s...