Tag Archives: RSBI:LITIGATION

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

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Elon Musk is sued by shareholders over delay in disclosing Twitter stake

NEW YORK, April 12 (Reuters) – Elon Musk was sued on Tuesday by former Twitter Inc (TWTR.N) shareholders who claim they missed out on the recent run-up in its stock price because he waited too long to disclose a 9.2% stake in the social media company.

In a proposed class action filed in Manhattan federal court, the shareholders said Musk, the chief executive of electric car company Tesla Inc (TSLA.O), made “materially false and misleading statements and omissions” by failing to reveal he had invested in Twitter by March 24 as required under federal law.

Twitter shares rose 27% on April 4, to $49.97 from $39.31, after Musk disclosed his stake, which investors viewed as a vote of confidence from the world’s richest person in San Francisco-based Twitter.

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Former shareholders led by Marc Rasella said the delayed disclosure let Musk buy more Twitter shares at lower prices, while defrauding them into selling at “artificially deflated” prices.

The lawsuit seeks unspecified compensatory and punitive damages.

A lawyer for Musk had no immediate comment. Tesla is not a defendant.

U.S. securities law requires investors to disclose within 10 days when they have acquired 5% of a company, which in Musk’s case would have been March 24. read more

Twitter announced on April 5 that Musk would join its board of directors, but this week said he had decided not to. read more

By not joining the board, Musk, a prolific Twitter user, can keep buying shares without being bound by his agreement with the company to limit his stake to 14.9%.

Some analysts have suggested Musk could push Twitter to make changes, or even pursue an unsolicited bid for the company.

Rasella said he sold 35 Twitter shares for $1,373, or an average price of $39.23, between March 25 and 29. Musk is worth $265.1 billion, according to Forbes magazine.

The case is Rasella v Musk, U.S. District Court, Southern District of New York, No. 22-03026.

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Reporting by Jonathan Stempel in New York; editing by Richard Pullin

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Amazon union has strong lead in NY vote count; losing in Alabama

March 31 (Reuters) – Amazon.com Inc (AMZN.O) workers at a warehouse in New York City’s Staten Island have so far voted 57% in favor of unionizing with a final tally due on Friday, a potential landmark victory for organized labor at the second-largest U.S. private employer.

But that win contrasted with 53% of Amazon workers in Alabama rejecting unionization, in a still-not final outcome.

The Alabama contest could hinge on 416 challenged ballots to be adjudicated in the coming weeks, which are sufficient to change the result, said the U.S. National Labor Relations Board (NLRB), which is overseeing the election. The situation is far different from last year when workers sided with Amazon by a more than 2-to-1 margin against unionizing.

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If final results show either location voted for a union, it would be a historic first for the retailing giant in the United States and a milestone for labor advocates, who for years have considered Amazon’s labor practices a threat to workers.

In fierce campaigns, Amazon has warned about unions in notices in bathroom stalls and held mandatory meetings telling workers that labor groups could force them to strike. It has raised pay and offered bigger signing bonuses in a labor shortage, appealing to staff who have worried organizing means perpetual strife.

At the same time, union drives have picked up momentum. Nine U.S. Starbucks (SBUX.O) stores have voted to organize, with more than 150 more seeking elections. read more Amazon workers responded to more in-person outreach by labor activists as the pandemic subsided, and a second company warehouse in Staten Island, LDJ5, will also vote on whether to unionize starting on April 25.

With nearly 2,700 ballots counted from workers at Amazon’s JFK8 warehouse in Staten Island, about 57% of votes were in favor of a union, according to a Reuters tally of the count overseen by the NLRB and streamed over Zoom. The count will resume on Friday at 9:30 a.m. ET (1330 GMT).

Christian Smalls, a former Amazon employee spearheading the New York union effort, said, “To get to this point, it’s already history.” His group is called the Amazon Labor Union.

A union win in New York “would be a triumph for unconventional organizing campaigns,” said John Logan, a labor professor at San Francisco State University. Smalls’ group made great use of social media during the campaign and diverged from a typical labor playbook, he said.

‘CONTINUE TO FIGHT’

For Bessemer, Alabama, the tally of roughly 1,900 valid ballots concluded on Thursday, but the outcome is far from certain. The NLRB said it will hold a hearing in the next few weeks to determine if any of the 416 challenged ballots should be opened and counted.

Eli Morrison, a 42-year-old Amazon worker who lives in Tuscaloosa, Alabama, said he voted against unionizing and was pleased to see the union trailing. He said he appreciates the flexibility Amazon gives him to pick up extra shifts, a benefit he fears he would lose if workers unionized.

“I come in, I bust ass every day, I get stuff done,” said Morrison, who previously held a union job at a grocery store. “I wouldn’t get to do that if there was a union. It would be whoever’s been there the longest and whoever’s been there longest doesn’t mean that they’ve done the best.”

Jennifer Bates, an early backer of the Alabama union campaign, said, “The election is not over until every ballot is counted that’s eligible, and we’ll continue to fight.”

The labor group organizing the effort plans to file objections to Amazon’s conduct around the election as well, said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union (RWDSU).

Objections previously filed by the RWDSU led to a determination by the NLRB that Amazon had improperly interfered in the original contest in Bessemer, prompting the board to set aside the results and call for this year’s re-run. read more

Amazon did not immediately comment on the RWDSU’s plans to object or on the vote counts Thursday. The company has said it wants its employees’ voices to be heard and that it is focused on continuing to make Amazon a great place to work.

Regarding communications with Amazon staff during the contests, the company has said it was important for workers to know what a union would mean for their day-to-day employment.

A simple majority of votes cast is needed to win. Neither the New York union nor labor board has said how many ballots were received in Staten Island.

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Reporting by Jeffrey Dastin in Palo Alto, California, Danielle Kaye in New York and Julia Love in San Francisco; Additional reporting by Doyinsola Oladipo and Hilary Russ in New York, Nivedita Balu and Niket Nishant in Bengaluru; Editing by Peter Henderson, Anna Driver and Lisa Shumaker

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Chevron begins replacing workers ahead of California refinery strike

Chevron Corp’s refinery is shown in Richmond, California August 7, 2012. REUTERS/Robert Galbraith

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March 20 (Reuters) – Chevron Corp began turning over some operations at a California oil refinery to replacement workers on Sunday ahead of a United Steelworkers strike set to begin shortly after 12 a.m. PDT on Monday.

A union official said it had notified Chevron of its intent to begin a strike at the plant outside of San Francisco after negotiations failed to reach agreement on a new labor contract.

The existing contract at the Richmond, California, refinery expired Feb. 1. Both sides had agreed to a rolling extension that was not renewed by the union after workers rejected the latest offer.

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The 245,000 barrel-per-day plant is the second-largest refinery in the state, employs more than 500 union-represented workers and produces gasoline, jet fuel and diesel fuel.

“It’s disappointing that Chevron would walk away from the table instead of bargaining in good faith,” said Mike Smith, chair of the USW’s National Oil Bargaining Program.

Chevron is committed to continuing to negotiate toward an agreement, a spokesperson said in a statement on Sunday.

The San Ramon, California-based company was “prepared to continue normal operations safely and reliably to provide the energy products that are needed by consumers,” the spokesperson added.

California has some of the highest fuel prices in the nation with a gallon of unleaded regular gasoline on Sunday selling for $5.847 and a gallon of diesel for $6.258, according to motorist group AAA.

A Chevron turnover team began taking control of refinery operations manned by union workers on Sunday afternoon ahead of the strike deadline, according to a person familiar with the matter.

The USW and U.S. refiners last month reached a national agreement that provides a 12% pay raise over four years to the union’s about 30,000 members at oil and chemical companies. Each local union separately negotiates a contract covering plant-specific issues, and Richmond workers have twice voted down Chevron proposals. read more

On Saturday, the union had advised machinists to go to the refinery and remove their personal tools before the contract extension expires.

Union members have twice voted to reject contract proposals put forward by Chevron. The last vote, completed on Saturday, was overwhelmingly against what was called the company’s last, best and final offer, according to messages posted on-line by USW Local 12-5.

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Reporting by Gary McWilliams, additional reporting by Erwin Seba; Editing by Will Dunham and Diane Craft

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Amazon slams Reliance takeover of Future stores as ‘fraud’ in India newspaper ads

NEW DELHI, March 15 (Reuters) – Amazon.com Inc has gone on the attack in its bitter dispute with two Indian retailers, accusing them of fraud in Indian newspaper ads on Tuesday after Reliance Industries (RELI.NS) suddenly took over many of Future Retail (FRTL.NS) stores.

Amazon has been contesting the planned $3.4 billion sale of Future Group’s retail assets to Reliance, first announced in 2020, and the case is currently before the Indian Supreme Court.

Reliance, India’s biggest conglomerate and retailer run by the country’s richest man, began taking over the prized real estate with utmost stealth on Feb.25 when its staff showed up at many of Future biggest stores to assume control, sources have told Reuters. read more

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In ads headlined “PUBLIC NOTICE” in leading Indian newspapers on Tuesday, Amazon said: “these actions have been done in a clandestine manner by playing a fraud on the constitutional courts in India.”

Future and Reliance did not immediately respond to a request for comment.

Amazon’s public outcry comes even though on March 3 it offered to hold talks. The ongoing talks have raised hopes the dispute could be resolved. read more

Future has said in filings this month that it could not pay rent at many outlets given its distressed financial situation and that Reliance, which had taken over many of its leases, had issued it with termination notices.

Amazon is concerned that Reliance is continuing to take over Future stores even as the talks continue, according to a source with direct knowledge of the matter who was not authorised to speak to media and declined to be identified.

The newspaper ads were aimed at alerting all stakeholders, including Future’s lenders, that the transfer of assets to Reliance is legally prohibited, the source added.

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Reporting by Aditya Kalra and Abhirup Roy; Editing by Edwina Gibbs

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‘The shops are gone’: How Reliance stunned Amazon in battle for India’s Future Retail

  • Reliance began stealth seizure of Future stores on Feb. 25
  • Much of Future management was in the dark about takeover-sources
  • Reliance to rebrand stores, keep Future employees on -sources
  • After takeover of stores, Amazon and Future to commence talks

MUMBAI, March 6 (Reuters) – At a large Future Retail (FRTL.NS) supermarket in Mumbai last week, workers were unloading hundreds of bright blue grocery crates belonging to India’s biggest retailer Reliance.

Prospective customers were turned back by security, disappointed at the closed state of the store that still carries the signage of Future’s biggest brand, Big Bazaar, but which will likely soon be rebranded as a Reliance outlet.

Across India, similar scenes are being played out as Reliance Industries (RELI.NS), India’s biggest conglomerate run by Mukesh Ambani, the country’s richest man, presses ahead with a shock de facto takeover of prized retail real estate that Amazon.com Inc has been keen to take part-ownership of.

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The high-profile bitter dispute between corporate titans in which Amazon has sought to block Reliance’s planned $3.4 billion purchase of Future Group’s retail assets is currently before India’s Supreme Court.

Reliance’s takeover began with utmost stealth on the night of Feb. 25 when its staff began arriving at Future stores. Many in Future’s management were in the dark about the plans as store employees from all over the country frantically began to call, according to people with direct knowledge of the matter.

“It was tense, everybody was panicking. We didn’t know who they were. They wanted access and seniors didn’t know about it,” a New Delhi Big Bazaar store employee said, describing what happened around 8 p.m. that day.

At a Future store in Sonipat town in northern Haryana state, announcements were made asking customers to leave as Reliance seized control, one source said. In Vadodara in western Gujarat, Future employees arriving for work the next morning were asked to go back home with no explanation, said another source.

Citing unpaid payments by Future, Reliance has taken control of operations of some 200 Big Bazaar stores and has plans to seize another 250 of Future’s retail outlets. Combined, they represent the crown jewels of Future’s retail network and around a third of all Future outlets. read more

Although Reliance had not played a large public role in the legal dispute, it had, according to sources, for some months assumed many of the leases held by cash-strapped Future, India’s No. 2 retailer and Amazon’s estranged business partner.

Reliance’s sudden possession of the stores appears to have landed what some analysts are calling a coup de grace that spoils Amazon’s chances of untangling the transfer of Future’s assets to Reliance. That’s despite a series of legal battles won by the U.S. e-commerce giant to date blocking the 2020 deal announced between the two Indian companies.

“What will Amazon fight for now?” said a source close to the U.S. company with knowledge of the legal dispute. “The shops are gone.”

Representatives for Reliance, Amazon and Future did not respond to Reuters queries for this article. Sources asked not to be identified due to the sensitive nature of the dispute.

AFTER THE TAKEOVER, TALKS

Future Retail said on Feb. 26 it was “scaling down its operations” to cut losses although it made no mention of Reliance in its statement. Future Group as a whole has more than $4 billion in debt.

Reliance plans to retain Future’s employees at the stores it takes over, sources have said.

Amazon, which has a stake in a separate Future Group unit that it argues prevents Future from selling retail assets without its permission, has called the supermarkets and other stores an “irreplaceable” network in a sector worth $900 billion in revenues annually.

The legal wrangles had over time become increasingly high-stakes and marked by ugly rhetoric. At one point, Amazon sought for Future Chief Executive Kishore Biyani to be detained in prison for disobeying a legal order. And Future once likened Amazon to Alexander the Great and his “ruthless ambition to scorch the earth”.

But on Thursday, six days after Reliance’s move, Amazon at a Supreme Court hearing unexpectedly called for cordial talks to end the dispute – a proposal Future agreed to.

“People have taken over shops … let’s at least have a conversation,” Amazon’s lawyer Gopal Subramanium said.

Discussions are expected to begin soon. read more

Whatever the outcome of the talks, analysts say Amazon had gravely underestimated Reliance.

“If anybody should have seen this coming, it should have been Amazon and they should have prepared against it,” said Devangshu Dutta of retail consultancy Third Eyesight.

“Clearly, they didn’t.”

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Reporting by Aditya Kalra in New Delhi and Abhirup Roy in Mumbai; Additional reporting by Francis Mascarenhas in Mumbai and Amit Dave in Ahemedabad; Editing by Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles.

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