Key facts
- The 9th US Circuit Court of Appeals upheld a ruling that the engineers' claims are exempt from their arbitration agreements.
- The court rejected SpaceX's argument that a federal sexual harassment law did not cover the claims.
- The engineers claim CEO Elon Musk ordered their firing after they circulated a critical letter; SpaceX denies the allegations.
- Attorney Laurie Burgess said the engineers were delighted with the court's well-reasoned decision.
A US appeals court on Tuesday rejected SpaceX's request to send a lawsuit by eight former engineers to private arbitration, allowing their claims to continue in court, Reuters reported.
The San Francisco-based 9th US Circuit Court of Appeals upheld a federal judge's ruling that the engineers' claims were exempt from the arbitration agreements they signed at SpaceX. The court rejected SpaceX's argument that the claims were not covered by a federal law that allows individuals to pursue lawsuits in sexual harassment disputes regardless of arbitration agreements.
The engineers filed the lawsuit in 2024, claiming SpaceX CEO Elon Musk ordered their firing after they circulated a letter calling him a distraction and an embarrassment and urging executives to disavow sexually charged comments he made on social media. The lawsuit said Musk's conduct fostered a pervasively sexist culture at SpaceX where female engineers were routinely subjected to harassment and sexist comments. SpaceX has denied the allegations.
Spokespeople for SpaceX did not immediately respond to a request for comment on the decision. The engineers' attorney, Laurie Burgess, said they were delighted with the court's well-reasoned decision.