Tesla ‘Toxic’ Workplace Suit Should Be Dismissed, Judge Says

A Tesla Inc. investor suit accusing executives and directors of fostering a “toxic” work environment should be dismissed, a federal magistrate judge recommended.

Shareholder derivative claims against CEO Elon Musk, executives and directors lack standing, Magistrate Judge Dustin M. Howell said.

The court should grant a Nov. 7, 2022 motion to dismiss without prejudice, Howell said, rejecting the plaintiffs’ argument that making a demand on the company’s board would be futile because directors are likely liable themselves. He also said the court should dismiss a claim that Tesla issued false or misleading proxy statements for failure to state a ...