A federal court jury has granted $25.6 million in compensation to Shannon Phillips, a former Starbucks regional manager, who claimed that she and other white employees faced unfair repercussions following the highly publicized arrests of two Black men at a Philadelphia store in 2018.
The jury in New Jersey awarded Phillips $600,000 in compensatory damages and $25 million in punitive damages. They concluded that her termination was influenced by her race, which violated federal and state anti-discrimination laws.
Although Phillips, who oversaw operations in Philadelphia, southern New Jersey, and other areas, was not involved in the arrests, she asserted that she was instructed to unjustly place an uninvolved white manager on administrative leave based on false grounds, as stated in her lawsuit.
Phillips claimed in her lawsuit that she was fired less than a month later after voicing objections to the suspension of the district manager, who had no connection to the store where the arrests occurred.
According to the lawsuit, Starbucks justified the district manager’s suspension by alleging pay disparities between Black and white store managers. However, Phillips argued that this rationale was illogical, as district managers had no authority over employee salaries.
The lawsuit further alleged that Starbucks was intentionally targeting white employees in the region as a means to demonstrate to the community that it had appropriately addressed the incident.
In the closing arguments, attorney Laura Mattiacci, representing Phillips, informed the jurors that Starbucks was seeking a “sacrificial lamb” to appease public outrage and demonstrate its actions. A source reported that Mattiacci stated that selecting a Black employee for this purpose would have backfired on the company.
Starbucks refuted Phillips’ allegations and stated that they required an individual with a proven history of “strength and resolution” to handle crises. They replaced Phillips with a regional manager who possessed relevant experience, including managing the aftermath of the 2013 Boston Marathon bombings.
However, Phillips’ attorney highlighted earlier testimony from a Black district manager responsible for the store where the arrests occurred. This manager described Phillips as highly regarded by her colleagues and testified that she worked tirelessly following the arrests.
According to an email from attorney Laura Mattiacci to The Associated Press, the awarded amount has been confirmed. The judge will now assess potential additional compensation for back pay, future pay, and attorney’s fees. Mattiacci stated her intention to request approximately $3 million for lost pay and around $1 million for attorney’s fees. Starbucks declined to comment on the matter.
The incident in April 2018 involved the arrests of Rashon Nelson and Donte Robinson at a Starbucks coffee shop near Rittenhouse Square in Philadelphia. The manager called the police after the two men refused to make a purchase or leave the premises. Subsequently, Nelson and Robinson were released without charges.
The arrest, captured on video, sparked nationwide outrage and prompted the current CEO of Starbucks to personally apologize to the individuals involved. The company subsequently reached a settlement with both men, the details of which were not disclosed, along with an offer of free college education. In addition, Starbucks implemented policy changes and temporarily closed stores nationwide for racial-bias training.
The two men also reached an agreement with the city of Philadelphia, wherein they received a symbolic payment of $1 each and a commitment from officials to establish a $200,000 program to support young entrepreneurs. The Philadelphia Police Department adopted a new policy regarding the handling of individuals accused of trespassing on private property, cautioning businesses against misusing the authority of police officers.
