Musk Gets Court to End Tesla ‘Toxic Workplace’ Shareholder Suit

March 13, 2025, 7:02 PM UTC

A Tesla Inc. shareholder suit alleging the automaker’s leadership fostered a “toxic workplace culture” is dismissed with finality, a federal court said in a sealed order.

Judge David A. Ezra’s rejection of claims Wednesday against CEO Elon Musk and other directors and officers on behalf of the company follows his earlier dismissal ruling in the US District Court for the Western District of Texas. That 2023 decision, which wasn’t under seal and allowed for re-pleading, focused on the directors’ independence and potential liability.

  • The derivative suit alleged Tesla directors and executives caused financial and reputational harm by allowing and even ...

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