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Tesla Loses Bid to Move Sex-Harassment Suit Into Arbitration

  • Judge says Tesla ‘ambushed’ worker into agreeing to arbitrate
  • Company sought to move suit to closed-door proceedings
Updated on

Tesla Inc. must keep defending itself in open court against claims that female employees face “rampant sexual harassment” in its largest California factory, a judge ruled, spurning the company’s request for closed-door arbitration.

Alameda County Superior Court Judge Stephen Kaus ruled Monday that the worker who filed the complaint can proceed with her case -- even though she signed an arbitration agreement giving up her right to sue.