Court says engineer's defamation lawsuit against Tesla, Musk can proceed
In 2019, ex-Tesla engineer Cristina Balan filed a defamation suit against the electric vehicle manufacturer along with its CEO, Elon Musk.
Although Balan's lawsuit was initially dismissed, an appeals court ruled this week that her case against Musk and her former employer can proceed.
Safety concerns raised
According to CCN, Balan was employed by Tesla from 2010 until 2014 as a lead engineer on the company's Model S interiors design team.
Balan claims that during the course of this time period she regularly raised possible safety considerations which were created by floor mats in the Model S.
Yet the former Tesla employee alleged in a blog that those concerns were not well received and resulted in her being "bullied, humiliated, demoted and retaliated against in the most horrible way possible."
Balan was eventually fired, and she responded by suing the company for wrongful dismissal as well as filing complaints with the Securities and Exchange Commission (SEC) and the National Labor Relations Board (NLRB).
Counterclaims leveled
Her battle with Tesla took a new turn in 2017 when the website HuffPost quoted Balan's blog, prompting Tesla to level counter allegations.
Specifically, the car manufacturer asserted that Balan had engaged in misconduct by working on a "secret project" while on the job.
What's more, Tesla also accused its former engineer of misappropriating company funds along with engaging in unauthorized travel.
Those claims led to Balan's original lawsuit against Tesla, which was forced into arbitration. She later amended her complaint to target Musk personally.
Although her defamation case was ultimately dismissed and the arbitrator ruled in favor of Tesla and Musk, Balan saw a reversal of fortunes on Monday.
Lawsuit greenlit
As the BBC reported, a three-judge panel of the United States Court of Appeals for the Ninth Circuit ruled that Balan's lawsuit can proceed.
"We are hoping we will start a new lawsuit, and we will have the chance to take on Elon Musk in front of a jury and judge," she was quoted as telling the BBC.
Balan's attorney, Bill Moran, also spoke up, saying, "We are confident we can secure her either a new arbitration or alternatively a trial in court so that her case can be heard on the merits after so many years."
"She has fought cancer while waging this case... she is the epitome of strength and resolve, and she is now one step closer to getting the justice she deserves," he added.