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Starbucks Big Payout Lawsuit

Updated: Aug 7, 2023

Shannon Phillips is a name Starbucks would love to forget and most likely has regret

on how they treated her and other white employees.


Back in 2018, you may recall two black men were arrested in Philadelphia after

refusing to leave the establishment after taking up a table, and using the restroom

for several hours without purchasing anything from the menu at all.

Phillips was then the regional manager of the Philadelphia and southern New Jersey

area at the time. Phillips claimed that Starbucks had given her orders to put a white

manager, at a totally different location of the incident, on administrative leave with

reasons she knew weren’t legitimate, while the black manager at the coffee shop

where the incident had taken place was not spoken to.


Phillips deferred to suspend the white manager, which she knew hadn’t broken any

company policies, and was then herself fired about a month later.

The jury in a federal court awarded Phillips a hefty amount of $25.6 million on

Monday in New Jersey. She received $25 million in punitive damages and $600,000

in compensatory damages. Jurors believed Phillips’ claim that race was the

determining factor of her being fired, which is a violation of federal and state anti-

discrimination.


FZ- 6/22/23


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