Holland & Knight is withdrawing from an employment discrimination case against Elon Musk’s Tesla Inc. following the departure of several key litigating partners to Polsinelli. Among those leaving are partners Sara Begley and Tina Tellado, along with associate Mary Vu, who have taken the Tesla case with them. Polsinelli is now co-counsel to Tesla, alongside Reed Smith, as confirmed in a court filing.
The case, filed by the Equal Employment Opportunity Commission (EEOC), alleges that Tesla fostered a racially hostile and abusive work environment for Black employees at its Fremont, California, facility. The EEOC also claims that Tesla retaliated against employees who lodged workplace complaints. Holland & Knight and Reed Smith previously failed in their attempt to get the case dismissed earlier this year.
The withdrawal from the case coincides with another litigation-related conflict involving Holland & Knight. The firm previously fought with Tesla over an amicus brief submitted by Charles Elson, a retired University of Delaware professor and firm consultant, in a separate matter regarding Musk’s $56 billion pay package. Elson subsequently resigned from Holland & Knight after asserting that Tesla threatened to terminate the firm’s representation over the brief.
The departure of over 20 partners from Holland & Knight to Polsinelli is a significant move, as Polsinelli had not previously entered an appearance on behalf of Tesla in a U.S. federal court. This shift comes at a critical time for Tesla, which continues to battle various legal challenges, including a consumer antitrust case in California.
The EEOC case, Equal Employment Opportunity Comm’n v. Tesla, Inc., is being heard in the Northern District of California, and a related state court case, Vaughn v. Tesla, Inc., is also ongoing in Alameda County, California.
For further details, please refer to the full article on Bloomberg Law.