Tesla Faces Whistleblower Suit Over Sale of Repaired Cars as New
Tesla has vehemently denied the allegations in the complaint and contended that the plaintiff is not entitled to any recovery, the company said in its notice of removal.
March 23, 2018 at 05:57 PM
3 minute read
Tesla faces a whistleblower suit from a former employee who says the upscale electric car maker fired him for complaining about damaged vehicles that were fixed up and sold as new.
Adam Williams of Lumberton, New Jersey, filed the suit in Burlington County Superior Court in January, and a lawyer for Tesla removed it to federal court in Camden on Friday.
Tesla has vehemently denied the allegations in the complaint and contended that Williams is not entitled to any recovery, the company said in its notice of removal. However, the company concedes that the District Court's jurisdictional level of $75,000 in controversy has been met. Tesla said in its removal notice that Williams' salary at the time of dismissal was $120,000. If the case were to proceed to trial in one year, Williams' back pay would be $180,000, the company said.
Williams, who worked at the company's showroom in Springfield, New Jersey, brought his suit under the Conscientious Employee Protection Act. He asserts that the company made high-dollar, predelivery damage repairs to its vehicles without disclosure to buyers. Williams also reported to bosses that Tesla's practice of selling cars designated as “lemons” as used cars, demos or loaners was illegal or fraudulent.
Williams joined Tesla in 2011. He says he first made the reports about sale of damaged vehicles in late 2016 to his supervisor, Matt Farrell; vice president, Jerome Guillen, and Lenny Peake, an East Coast regional manager.
In early 2017, Williams was demoted from regional manager to service manager by Brian Applegate, a director for Tesla who is the boss of Farrell and Peake. Applegate told Williams he has a “brand” at Tesla and that there is no place for him in the company, the suit claims.
In July 2017, Williams was again demoted to the position of mobile manager, despite performing his job duties up to the expectations of the company, his suit claims. And in September 2017, Williams was terminated by Albert Grice, who told him the decision was made by Applegate, according to the suit. The stated reason for his termination was performance, but he was performing up to expectations, the suit claims.
Tesla spokeswoman Gina Antonini said in a statement about the case, “There's no merit to this lawsuit. Mr. Williams' description of how Tesla sells used or loaner vehicles is totally false and not how we do things at Tesla. It's also at odds with the fact that we rank highest in customer satisfaction of any car brand, with more owners saying they'd buy a Tesla again than any other manufacturer. Mr. Williams was terminated at Tesla for performance reasons, not for any other reason.”
Toni Telles of Eric Shore's office in Voorhees, New Jersey, who filed the suit, did not return a call. Alexa Nelson of Littler Mendelson in Philadelphia, who represents Tesla, also did not return a call, but a spokeswoman for the law firm, Jenae Journot, said the firm is unable to comment on client matters.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllDispute Over Failure to Accommodate Disability Ends in $900K Settlement
3 minute readInsurer Has No Duty to Defend 'Laidlow' Claims, NJ Supreme Court Says
3 minute readNJ Workers Can't Sue for Alleged Employment Discrimination Over Marijuana Use, 3rd Circuit Rules
4 minute readUnion Leader Awarded $662K Judgment Against Employer in Decade-Old Wiretap Suit
5 minute readTrending Stories
- 1Sterlington Brings On Former Office Leader From Ashurst
- 2DOJ Takes on Largest NFT Scheme That Points to Larger Trend
- 3Arnold & Porter Matches Market Year-End Bonus, Requires Billable Threshold for Special Bonuses
- 4Advising 'Capital-Intensive Spaces' Fuels Corporate Practice Growth For Haynes and Boone
- 5Big Law’s Year—as Told in Commentaries
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250