Former Tesla engineer wins appeal of libel case against Elon Musk

Published: 2025-04-17 08:02:07 ET TSLA

Key takeaways

In 2014, Cristina Balan, a former Tesla engineer, raised concerns about a possible design flaw in the braking systems of Tesla vehicles. Following her resignation from the company, she filed a defamation lawsuit alleging that Tesla publicly accused her of embezzlement for allegedly using company resources for a personal project.

Arbitration decision reversed

Initially, a judge upheld an arbitration decision that dismissed Balans' case because of the California statute of limitations. However, a panel of appellate judges in California overturned that ruling, ruling that the district court lacked jurisdiction to affirm the arbitration award. This decision clears the way for Balan to potentially take her libel claim against Tesla and Elon Musk to court.

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