Elon Musk and SpaceX are embroiled in a legal battle as eight former employees file a lawsuit against the rocket company and its CEO, Elon Musk. The lawsuit accuses Musk of personally orchestrating their terminations after they raised concerns about sexual harassment within SpaceX.

According to the lawsuit, the employees were fired in 2022 shortly after circulating an “open letter” within SpaceX. The letter reportedly criticized Musk for behavior that allegedly contributed to a hostile work environment, describing Musk’s conduct as demeaning and inappropriate. The lawsuit contends that Musk fostered a workplace culture reminiscent of “Animal House,” where women were objectified and subjected to lewd remarks.

The plaintiffs, including engineers Paige Holland-Thielen, Rebekah Clark, and Claire Mallon, detail specific instances of sexual harassment and misconduct. Holland-Thielen reported a senior colleague’s inappropriate comment about a graph in a professional setting, while Clark raised concerns about workplace comments following Musk’s own provocative statements on social media.

SpaceX’s response to these allegations has been multifaceted. Gwynne Shotwell, SpaceX’s president, defended the company, asserting that SpaceX takes all harassment complaints seriously and investigates them thoroughly. She refuted the portrayal of SpaceX as depicted in media reports, emphasizing Musk’s positive impact within the company.

The lawsuit further alleges violations of federal and state labor laws, accusing Musk of creating a hostile work environment through his actions and retaliating against employees who opposed such behavior. It highlights instances where HR responses were allegedly inadequate, with complaints going unresolved or ignored, leading to further distress among employees.

The legal action marks a significant escalation in the ongoing scrutiny of SpaceX’s workplace practices. Earlier, the National Labor Relations Board (NLRB) had initiated proceedings against SpaceX for alleged labor law violations related to these firings, prompting SpaceX to challenge the NLRB’s jurisdiction in a separate lawsuit.

In response to the latest lawsuit, Laurie Burgess, counsel for the plaintiffs, condemned Musk’s alleged conduct and expressed determination to hold him accountable in court. The lawsuit seeks to establish Musk’s personal liability for SpaceX’s workplace environment and the terminations, portraying him as acting with impunity and above the law.

As the lawsuit unfolds in California state court, it casts a shadow over SpaceX’s recent successes, including the recent launch of the Starship megarocket. The outcome of this legal battle could have broader implications for SpaceX’s corporate governance and Musk’s public image, underscoring the challenges faced by tech giants in addressing workplace misconduct allegations.

The lawsuit underscores the importance of fostering inclusive and respectful workplaces in the tech industry, amid heightened scrutiny of corporate leaders’ responsibilities and accountability for workplace culture.

For now, the legal proceedings continue to unfold, with both sides preparing to present their arguments in what promises to be a closely watched trial.