A jury has ruled in favor of Shannon Phillips, a former Starbucks regional director, who filed a lawsuit against the company alleging wrongful termination based on her race. Phillips,

who managed a region of stores for approximately 13 years, was fired following the arrest of two Black men at a Philadelphia Starbucks in April 2018.

The New Jersey jury unanimously returned a verdict of $25.6 million, including $25 million in punitive damages and $600,000 in compensatory damages. Phillips, represented by Console Mattiacci Law, will also seek back and front pay. Starbucks expressed disappointment in the decision and is currently evaluating its next steps.

The incident in 2018 involving the arrest of the two men sparked protests and outrage. The men were asked to leave the coffee shop after sitting at a table without making a purchase. When they refused to leave as they were waiting for a business associate, the store manager called the police, resulting in their arrest. Settlement agreements were later reached between the men, Starbucks, and the City of Philadelphia.

In her 2019 lawsuit, Phillips claimed that Starbucks engaged in racial discrimination by targeting White employees who were not involved in the arrests but worked in and around Philadelphia, as an attempt to showcase a proper response to the incident. Phillips, who oversaw areas including Philadelphia, alleged that Starbucks instructed her to place a White employee on administrative leave based on alleged discriminatory conduct, which she believed to be inaccurate. After defending the employee, Phillips stated that she was terminated.

Starbucks previously denied these claims, asserting that Phillips demonstrated an absence of leadership during the crisis and that her dismissal was necessary due to the critical nature of the situation. The 2018 incident posed a significant PR challenge for Starbucks, leading the company to implement changes such as revising its restroom policy and conducting anti-bias training for employees.

This verdict serves as a significant development in a case that highlights issues of racial discrimination and workplace fairness. Photo by GoToVan from Vancouver, Canada, Wikimedia commons.