Speaker 1 (00:00):
Tonight, the Starbucks regional manager fired after this moment.
Speaker 2 (00:06):
It’s ridiculous.
Speaker X (00:06):
No [inaudible 00:00:07].
Speaker 1 (00:07):
Which ignited a national uproar and forced the coffee giant into a racial reckoning. Now that former employee winning more than $25 million in damages after suing the coffee giant for violating her civil rights in her termination. It all started in April 2018 when these two men, Rashon Nelson and Donte Robinson, walked into a Starbucks in Philadelphia where they had a meeting. One of them was refused access to the bathroom without making a purchase and they were asked to leave. When they refused…
Speaker 2 (00:40):
Someone told me they did.
Speaker 4 (00:42):
They didn’t do anything. I saw the entire thing.
Speaker 1 (00:43):
A staff member called the police who arrested both Robinson and Nelson.
Speaker 5 (00:48):
Because you see us…
Speaker X (00:50):
We are here.
Speaker 1 (00:51):
The incident, a stain on the massive coffee retailer, sparking protests and national outrage. It ultimately prompted Starbucks CEO, Kevin Johnson, to release a video statement, taking accountability for the incident and promising to do better.
Speaker 6 (01:07):
What happened and the way that incident escalated and the outcome was nothing but reprehensible, and I’m sorry.
Speaker 1 (01:15):
Starbucks taking drastic action.
Speaker 7 (01:17):
Today, the company announced that all of its 8,000 US stores will close the afternoon of May 29th. Employees will go through racial bias training.
Speaker 1 (01:26):
And changing its bathroom policy so anyone could use them. The company eventually settling with Nelson and Robinson for an undisclosed amount of money and providing them with a free college education. The two also settled with the city of Philadelphia for a symbolic $1 each with Philly’s promise to invest in a youth entrepreneurship program.
Speaker 8 (01:48):
I’m thrilled that they just did it for a dollar with the city. It showed a lot of class on their part.
Speaker 1 (01:53):
But the drip drip of the fallout continued. The next year, Starbucks was in hot water again, hit with a lawsuit from the regional manager who oversaw that store in approximately 100 other locations. Shannon Phillips, who is white claims, she was fired after the incident because of her race. In the lawsuit, she says she was not involved in the arrests in any way and that Starbucks did not take any action against the black district manager who oversaw that store and had promoted the person who was responsible for making the call to police. On Monday, a federal jury in New Jersey sided with Phillips, awarding her $25.6 million in damages.
Speaker 9 (02:36):
What was ultimately determined by the jury was they kind of went after people that were not involved with that situation at all, making those decisions based on appearance and the race of the people that they disciplined who were associated with the Philadelphia store but not with the events that occurred.
Speaker 1 (02:55):
Starbucks fought the lawsuit in court, saying, “Phillips was not fired because of her race, but for failing to lead,” according to court filings. But the company has not commented publicly since the verdict and has not responded to our request for comment. In a statement, Phillips’ lawyer said, “Starbucks was looking for scapegoat and that Phillips will now be pushing for more back pay from Starbucks to be decided by the judge.”
Speaker 10 (03:20):
All right, asking for even more money. Steven Romo joins us now in studio. So Steven, what was the biggest piece of evidence in this case that bolstered the manager’s argument?
Speaker 11 (03:29):
Well, the legal expert we talked to really highlighted one piece of evidence in that lawsuit. The company allegedly punishing people who weren’t involved in the actual incident because they were white. Now, before she was fired, Phillips claimed she was told to suspend a white district manager who oversaw stores in Philadelphia, but not the one where this actually happened. And one other note about this, Tom, a lawyer we spoke to said he doesn’t actually think that she’ll get $25 million because that’s actually above what the law allows. Still a big deal that this jury to chose in her favor. We’ll have to see what comes of this.