Former Starbucks manager awarded $25.6M in anti-white race discrimination lawsuit

AP Photo/John Minchillo

A former Starbucks manager, who alleged that her termination was based on her race after the arrest of two African American men at a Philadelphia store, received a $25.6 million verdict from a federal jury in New Jersey on Monday, June 12. This incident garnered widespread criticism across the country.

After determining that Starbucks had infringed upon Shannon Phillips' federal civil rights and violated New Jersey's laws against racial discrimination, the jury ruled in favor of the former manager. They awarded Phillips $25 million in punitive damages and an additional $600,000 in compensatory damages.

The case dates back to 2018, during which Shannon Phillips held the position of regional director at Starbucks. In her role, she was responsible for overseeing operations in Philadelphia. In April of that same year, Donte Robinson and Rashon Nelson, two African American men, visited a Starbucks located in Rittenhouse Square, Philadelphia for a business meeting. While waiting for a third person to join them, Nelson requested permission to use the restroom but was denied. As they continued to wait without making a purchase, a manager contacted the police. Subsequently, both individuals were arrested on charges of trespassing and forcibly escorted out of the store while in handcuffs.

The incident was captured on video and swiftly gained significant online traction, accumulating millions of views. This video ignited a wave of public fury, leading to widespread protests, widespread media attention, and public outrage. In response to the backlash, Starbucks took decisive action by temporarily closing 8,000 of its stores for an entire day.

The purpose of this closure was to provide training to its employees on recognizing and addressing racial bias. Additionally, Starbucks implemented a revised bathroom policy, ensuring that it remains accessible to all individuals who enter their stores, irrespective of whether or not they make a purchase.

In her initial complaint, Phillips claimed Starbucks “took steps to punish white employees who had not been involved in the arrests, but who worked in and around the city of Philadelphia, in an effort to convince the community that it had properly responded to the incident.”

Furthermore, Shannon Phillips asserted that Starbucks failed to address the alleged misconduct of Paul Sykes, the Black manager at the Rittenhouse Square store. With nearly 13 years of tenure at Starbucks, Phillips held a prominent position managing approximately 100 retail stores spanning Philadelphia, Delaware, and portions of New Jersey and Maryland.