Judge Cuts Tesla Racism Lawsuit Award From $137M to $15M

From CNET: A federal judge on Wednesday reduced the nearly $137 million damages award in a racial discrimination lawsuit brought by a Black former employee to $15 million.

US District Court Judge William Orrick issued his ruling after a jury in October found that Owen Diaz had been subjected to racist abuse and discrimination while working as an elevator operator at the electric car company's Northern California factory between June 2015 and May 2016. The jury awarded Diaz $130 million in punitive damages and $6.9 million for emotional distress.

Orrick wrote in his 43-page ruling (see below) that while "the weight of the evidence amply supports the jury's liability findings" but also found that the jury's $130 million in punitive damages was "unconstitutionally large" and should be reduced to $13.5 million. He also found the jury's $6.9 million in compensatory damages "excessive" and should be reduced to $1.5 million, well above the $300,000 that Tesla had advocated for.

Orrick's order gave Diaz 30 days to accept the reduced order or seek a new trial.

Diaz's lawyer in the case said they were exploring their options, adding that he didn't blame the judge for reducing the damages award.

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