$25.6 Million Awarded to Former Starbucks Manager in Discrimination Lawsuit

Starbucks (Saul Loeb/AFP/Getty Images)

In a federal court, jurors granted $25.6 million to a former Starbucks regional manager who alleged unfair punishment of white employees following the 2018 arrests of two Black men at a Philadelphia location.

AP Photo/John Minchillo

Shannon Phillips received $600,000 in compensatory damages and $25 million in punitive damages after the jury found her firing violated federal and state anti-discrimination laws.

In April 2018, a Philadelphia store manager called the police on two Black men sitting in the shop, leading to national outrage. Phillips, not involved in the arrests, was instructed to place an innocent white manager on leave, prompting her objections.

Phillips was terminated less than a month later, claiming Starbucks aimed to punish white employees and convince the community of their appropriate response to the incident.

Photo: Getty Images

During closing arguments, Phillips' lawyer argued that Starbucks sought a "sacrificial lamb" but selecting a Black employee would have backfired.

Starbucks denied the allegations, stating they needed a manager with crisis management experience. They replaced Phillips with a regional manager who had dealt with the aftermath of the 2013 Boston Marathon bombings.

Supporting testimony from a Black district manager described Phillips as beloved by her peers and dedicated, working extensively after the arrests.

The awarded amount is $25.6 million, and further consideration will be given to back pay, future pay, and attorney's fees.

The 2018 incident resulted in national outcry, public apologies, settlements with the two Black men, changes in store policies, and racial-bias training across Starbucks locations.

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