A federal appeals court panel on Wednesday blocked Elon Musk's SpaceX from forcing eight former employees into private arbitration over their alleged sexual harassment.
The three-judge Ninth Circuit panel cited a 2022 law that lets plaintiffs bypass arbitration agreements in such cases. The court found the harassment claims qualify even before a judge decides whether they survive a motion to dismiss, a hurdle SpaceX argued.
Judge Eric Tung dissented, while Judge Danielle Forrest sided with the panel.
The lower court had already ruled against SpaceX in 2025, and it was not yet clear whether the company would appeal.