Tesla Inc TSLA will face a new trial related to the damages that it owes to a Black former factory worker after he turned down a $15 million award in a race discrimination lawsuit, Reuters reported on Monday.
What Happened: U.S. District Judge William Orrick in San Francisco ordered a new trial a week after the former elevator operator with Tesla, Owen Diaz, said he would not accept the award.
A jury had last October awarded Diaz a $137 million award. Orrick had in April lowered the $137 million jury award for Diaz to $15 million.
Diaz's lawyers said last week that the lower award was unjust because it undermined his constitutional rights to a trial by jury.
Orrick did not set a date for the new trial and has scheduled a conference for July 12.
Why It Matters: Diaz had in a 2017 lawsuit alleged that his colleagues and a supervisor at Tesla's Fremont assembly plant subjected him to a hostile work environment that included racist slurs, caricatures and swastikas.
The federal judge had found Diaz was subject to a hostile environment at the Tesla factory in Fremont and the company failed to stop the racism he faced.
Orrick had previously said the punitive damages were “extremely high” and that he could turn down Tesla’s demand for a retrial if Diaz agrees to a reduction in damages.
Price Action: Tesla closed 0.3% lower at $734.8 on Monday, according to data from Benzinga Pro.
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