Tag Archives: Payout

Judge finds Tesla liable to Black former worker who alleged bias, but slashes payout

April 13 (Reuters) – A federal judge said on Wednesday Tesla Inc (TSLA.O) was liable to a Black elevator operator who said the electric car company ignored racial abuse at the factory where he worked, but reduced a nearly $137 million jury award to $15 million.

U.S. District Judge William Orrick in San Francisco ruled after jurors last October found that Tesla subjected Owen Diaz to a hostile environment at Tesla’s factory in Fremont, California by allowing and failing to stop the racism he faced.

Diaz, who worked at the plant for nine months in 2015 and 2016, said other employees used racist slurs when speaking to him, and scrawled swastikas and slurs including the “N-word” on bathroom walls. He also said one supervisor drew a racist caricature near his workstation.

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In a 43-page decision, Orrick said the evidence amply supported the jury’s finding Tesla liable for the “profound” emotional harm Diaz suffered and the “often inadequate” disciplinary steps the company took.

But the judge reduced Diaz’s compensatory damages to $1.5 million from the “excessive” $6.9 million that the jury awarded, and lowered punitive damages to $13.5 million from the “unconstitutionally large” $130 million jury award.

Bernard Alexander, a lawyer for Diaz, in an interview said his client plans to appeal the lowered damages award.

“We’re pleased that the court upheld the jury’s finding that Tesla’s conduct was absolutely reprehensible,” Alexander said.

“The award of $15 million is substantial but does not come close to reflecting the harm caused to Mr. Diaz, or the reprehensibility of Tesla’s conduct,” he added.

Tesla and its lawyers did not immediately respond to requests for comment. The company had sought to limit compensatory and punitive damages to $300,000 each.

Led by billionaire Elon Musk, Tesla faces similar claims in other lawsuits.

In one such case, California’s Department of Fair Employment and Housing alleged in February that Black workers at the Fremont plant endured constant harassment, but saw their complaints ignored.

Tesla previously called that lawsuit misguided, and said it has adopted policies to prevent and punish racist conduct.

Compensatory damages are meant to cover actual losses, while punitive damages are meant to punish and deter violations.

Under U.S. Supreme Court precedent, punitive damages typically should be less than 10 times compensatory damages.

Legal experts had called Diaz’s original $137 million award one of the largest for a single plaintiff alleging workplace discrimination.

The case is Diaz v Tesla Inc et al, U.S. District Court, Northern District of California, No. 17-06748.

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Reporting by Jonathan Stempel and Daniel Wiessner in New York; Editing by Christian Schmollinger and Kenneth Maxwell

Our Standards: The Thomson Reuters Trust Principles.

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Prince Andrew news latest: ‘No way back’ for Duke of York as £12m ‘family money’ payout won’t mean he retur… – The US Sun

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Activision-Blizzard CEO to get $390 million payout

Activision-Blizzard CEO Bobby Kotick will walk away with a $390 million check as a result of Microsoft’s acquisition of his gaming company — just two months after employees demanded his firing over the firm’s alleged culture of sexual misconduct.

Kotick, 58, who is expected to leave Activision-Blizzard after the deal is completed sometime next year, agreed on Tuesday to sell his company to Microsoft in an all-cash deal valued at $75 billion.

The vast majority of his $390 million payout will come from the 3.95 million shares that he owns, according to securities filings.

Since Kotick doesn’t own any unvested equities, he will not be entitled to a change of control payment.

Kotick is said to be worth an estimated $870 million, according to Forbes.

The software giant’s acquisition of the Santa Monica-based gaming studio that has produced hits like Candy Crush, Call of Duty, and Guitar Hero will make it the third-largest company in the online gaming space behind Tencent and Sony.

Microsoft’s official announcement of the acquisition, the largest in the history of the tech giant, did not mention Kotick.

The payday comes just two months after Activision-Blizzard CEO Bobby Kotick’s employees staged a walkout demanding his ouster in the wake of allegations the firm enabled a toxic workplace culture.
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Kotick, who has helmed Activision-Blizzard since 1991 after he led a group of investors in purchasing the company, will stay on through the transition.

Once the deal closes in 2023, “the Activision-Blizzard business will report to Microsoft gaming chief Phil Spencer,” a Microsoft spokesperson told The Wall Street Journal.

Kotick told the Journal on Tuesday that he will “always be available to ensure that we are going to have the very best integration.” He refused to comment on his future status.

The Microsoft deal ends a tumultuous period for Activision-Blizzard. In recent months, the company has been scrutinized for its alleged mishandling of complaints related to reported instances of sexual harassment and discrimination.

In July of last year, the company was sued by the California Department of Fair Employment and Housing after a two-year investigation found alleged cases of harassment, discrimination, and a toxic workplace culture.

The investigation accused the firm of tolerating a “frat bro” culture that included rape jokes, crude comments, and groping. One female employee who was said to have been subjected to abuse died by suicide.

Kotick admitted last summer that the company was “tone deaf” in its response to California’s lawsuit.

Kotick, who has helmed Activision-Blizzard since 1991, will depart as CEO once the sale to Microsoft is complete sometime next year.
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In November, dozens of his employees staged a walkout demanding that the board remove Kotick after it was learned that the CEO knew about the company’s office culture for years.

In 2006, Kotick is alleged to have harassed one of his assistants before threatening to have her killed. A company spokesperson said that Kotick “quickly apologized” for what was described as an “obviously hyperbolic and inappropriate voice mail.”

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FIFA Will Share in $200 Million Payout From Corruption Scandal

Even as top soccer officials were still being arrested as part of a sprawling corruption investigation in 2015, lawyers for the sport’s global governing body and U.S. prosecutors began to embrace an intriguing premise:

The soccer organization, FIFA, and its affiliates were not only the hosts of the scheme, the thinking went, they were also its victims.

For prosecutors, the notion distinguished between the hijackers and the hijacked: It held individuals accountable for their crimes but spared the organizations and the sport that they had defrauded. For FIFA and its new leaders and lawyers, the framing had a bigger benefit: It protected against prosecution, and it offered the organization a chance to reclaim the tens of millions of dollars siphoned away by corrupt officials.

Tuesday brought the payoff: Six years after a wide-ranging criminal indictment laid bare decades of corruption in global soccer on a stunning scale, and five years after those in power started pursuing a piece of the millions that American authorities were rounding up, the U.S. government approved the payment of more than $200 million to FIFA and its two member confederations most implicated in the scandal.

The repayment will begin with an initial payment of $32.3 million in forfeited funds, the Justice Department said, but prosecutors have approved a plan in which the soccer organizations could receive as much as $201 million.

In a statement, FIFA’s president, Gianni Infantino, thanked the American authorities for their “fast and effective approach in bringing these matters to a conclusion, and also for their trust in general,” adding that soccer now considered itself “well past” its corrupt history.

“We will make sure that these funds are used properly and bring tangible benefits for people who really need it,” Infantino said.

The repayments will be directed to FIFA as well as to CONCACAF, the organization overseeing soccer in North and Central America and the Caribbean, and CONMEBOL, which governs the sport in South America. The previous leaders of those organizations, as well as those of national soccer federations across the Americas, had been implicated in the scandal in colorful detail. More than 50 people and companies were charged in the case, and dozens have pleaded guilty. Along the way, at least two defendants have died.

The Justice Department’s decision to return millions of dollars suggested a measure of restored faith in FIFA’s management, even as the money — something the organization first requested years ago — came with strings attached: It must be walled off in a foundation and directed toward developing soccer around the world, according to Tuesday’s announcement. A significant portion of the money will be directed to projects in the Americas, FIFA said, “given that they suffered significantly as a result of the criminal activities.”

Any spending from the new account, the World Football Remission Fund, will be subject to oversight and independent audit measures, American authorities said.

The money will be held in the U.S. bank system instead of in Switzerland, where FIFA has its headquarters, according to the terms of the agreement, which were described by two people familiar with the arrangement who requested anonymity because they were not authorized to discuss the details publicly.

Parameters for spending money recovered from the government have figured into other corruption cases, like the United Nations oil for food case, in which the Justice Department specifically designated restitution money for a development fund in Iraq.

“It’s not unprecedented to have the Justice Department weigh in on the appropriate use of the money,” Antonia M. Apps, a lawyer with Milbank, Tweed, Hadley & McCloy and a former federal prosecutor for the Southern District of New York, said. “The scale of this corruption case is much larger than your typical corruption case, so the dollars are greater than you would normally see.”

As American authorities announced their case in 2015 and dozens of powerful officials and marketing executives pleaded guilty to charges including racketeering, wire fraud and money laundering conspiracy, prosecutors made clear they saw the soccer organizations as victims that had been co-opted by dishonest operators.

Lawyers for FIFA and the regional confederations were quick to embrace that view, and fought further to manage the perceptions of prosecutors and the public by seeking to distance the organizations from the accused criminals, both by cooperating with the authorities and to solidify the sports organizations’ role as victims, powerless to their top leaders’ fraud.

In a court filing in 2016, lawyers for FIFA argued that the organization had lost at least $28 million paid to 20 soccer officials over 12 years, along with having suffered other incalculable costs.

CONMEBOL, the South American confederation, has already recovered millions of dollars through other channels. In July, it said it had been awarded more than $1.7 million by the Swiss authorities — money that had been in a personal account of one of its former leaders. That came in addition to the $55 million the organization said it had clawed back from the accounts of other former officials.

In the years since the FIFA corruption scandal burst into public view with raids on a luxury hotel on the eve of a FIFA congress in 2015, the case, one of the largest criminal prosecutions in America when it was announced, has moved forward even as public attention to its proceedings and to corruption in global soccer has waned.

Just this week, Reynaldo Vasquez, El Salvador’s former top soccer official who was charged in 2015, pleaded guilty in federal court in Brooklyn. And earlier this year, prosecutors announced the Swiss bank Julius Baer had agreed to pay more than $79 million in penalties for its role in laundering money in the scandal.

Even so, years on, key figures await sentencing, and some former officials remain at large. One, Marco Polo Del Nero, the former head of Brazil’s soccer federation, was recently recorded appearing to direct the federation’s affairs despite having been barred for life by FIFA from working in organized soccer.

But in announcing a new conviction this week, American law enforcement officials telegraphed that they were still keeping tabs on the sport. Tuesday’s announcement underscored that.

“From the start,” the acting U.S. attorney for the Eastern District of New York, Jacquelyn M. Kasulis, said in a statement, “this investigation and prosecution have been focused on bringing wrongdoers to justice and restoring ill-gotten gains to those who work for the benefit of the beautiful game.”

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