A jury on Monday awarded $25.6 million to a former Starbucks employee who sued the company alleging she and other white employees were unfairly punished, and that she was wrongfully fired, after the high-profile 2018 arrests of two Black men.
New Jersey jurors ruled unanimously in favor of Shannon Phillips, a former Starbucks regional manager, after a six-day trial, finding race was a determinative factor in her firing, in violation of federal and state anti-discrimination laws.
Phillips was awarded $600,000 in compensatory damages and $25 million in punitive damages Monday, according to Console Mattiacci Law, which represents Phillips. The law firm also said a judge would consider awarding $3 million for lost pay, as well a attorney’s fees.
STARBUCKS RESPONSE:Starbucks vows ‘unconscious bias’ training after having 2 black men arrested
What happened in 2018 arrest of two Black men at a Philadelphia Starbucks?
In April 2018, a manager at a Philadelphia Starbucks location called police on two Black men who were sitting in the store without ordering anything. The men were later released without charges. Phillips, who was regional manager of operations in Philadelphia at the time of the incident, was not involved with the arrests.
Video of the men’s arrest sparked national outcry and widespread protests.
PROTESTS IN 2018:Protesters chant at Philadelphia Starbucks where 2 black men were arrested
Former Starbucks employee alleges racial discrimination in lawsuit
In the lawsuit, filed in 2019, Phillips claimed Starbucks ordered her to put a white manager who also wasn’t involved in the incident on administrative leave. She said she was fired less than a month later after objecting to the manager being placed on leave.
According to the lawsuit, Starbucks ordered the manager be placed on administrative leave because of an allegation that Black managers were being paid less than white managers. But Philips argued district managers had no input on employee salaries.
The lawsuit alleged Starbucks was trying to “punish white employees” “in an effort to convince the community that it had properly responded to the incident.”
Starbucks denies allegations
At the time, Starbucks denied the allegations, saying the company needed someone with a track record of leading during a crisis. The company said it replaced Phillips with a regional manager who had such experience, Law360 reported.
Starbucks did not respond to a USA TODAY request for comment on Thursday.
Public outcry after the arrests led the CEO of Starbucks to apologize. The company also reached a settlement of an undisclosed sum with the two men, changed store policies and closed locations nationwide for an afternoon for racial-bias training.
Contributing: The Associated Press
USA TODAY
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