A lawsuit accuses the officers and directors of allowing a "toxic workplace culture" to grow at the company.
According to the complaint filed Thursday by stockholder Solomon Chau in federal court in Austin, Texas, Musk and others who run the world's largest electric-vehicle maker broke their fiduciary duty by fostering an environment of discrimination and harassment.
The toxic work environment has been going on for a long time, and only recently has the truth about it emerged, leading to legal action from government regulators and private parties. The company's reputation has been damaged due to the toxic workplace culture.
California's Department of Fair Employment and Housing found a widespread pattern of mistreatment of Black workers at the electric car maker's factory. Several female employees have complained about sexual harassment at the factory.
The California agency says thatTesla is trying to duck racism.
A request for comment was not responded to byTesla. In February, it said that the complaint was misguided.
Chau claimed that Musk either knew, was reckless, or was grossly negligent in ignoring the illegal activity.
The shareholder proposals were defeated by the company's board.
Activists haven't been able to get the board to adopt more transparency about how it resolves sexual harassment and discrimination complaints.
The case was heard in the Western District of Texas.
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