Tesla, Musk Are Free of Former Worker’s Whistleblower Claim

A former Tesla Inc. employee can’t pursue allegations that he was fired for reporting improper record keeping because the underlying issues were resolved through arbitration, a split federal appeals panel ruled Tuesday.

Although an arbitrator’s decision can never preclude a claim under the Sarbanes-Oxley Act, “a confirmed arbitral award can sometimes preclude relitigation of the issues underlying such a claim,” Judge Holly A. Thomas said for the US Court of Appeals for the Ninth Circuit.

Hansen’s work for Tesla included internal investigations concerning allegations of, among other things, theft, narcotics trafficking, wiretapping, and hacking, according to the opinion. After relaying ...