FOLLOW US

America June 15, 2023 3 mins read

Former Employee Awarded $25 Million in Starbucks Racial Discrimination Lawsuit

America ı By Jackie Allen

0 Comments

starbucks racial discrimination

In a groundbreaking ruling, a New Jersey jury unanimously sided with a former Starbucks employee, Shannon Phillips, who filed a lawsuit against the coffee giant for wrongful termination based on racial discrimination. 

The jury's verdict awarded Phillips a staggering $25.6 million, consisting of $25 million in punitive damages and $600,000 in compensatory damages. 

2018 Racial Firestorm

The lawsuit stems from an incident that occurred in April 2018 when two Black men, Donte Robinson and Rashon Nelson, were arrested at a Starbucks store in Philadelphia while waiting for a business meeting.

 The incident gained widespread attention and sparked nationwide protests, highlighting the issue of racial bias in public spaces. As a result, Starbucks temporarily closed its stores for a day to conduct racial bias training for its employees.

Less than a month after the arrests, Phillips, a regional director for Starbucks, received notice of her termination. 

Phillips, who had been with the company for nearly 13 years, vehemently denied any involvement in the incident and stated that she was not even present at the store on that day. 

She filed a lawsuit in 2019, alleging that her race played a significant role in her termination.

Starbucks Racial Discrimination Lawsuit

Following a six-day trial, the New Jersey jury ruled in favor of Shannon Phillips, holding Starbucks accountable for wrongful termination based on racial discrimination. The jury's decision to award $25.6 million in damages, included punitive damages.

Court documents reveal Starbucks' claimed that Phillips appeared overwhelmed and lacked awareness of the gravity of the Donte Robinson and Rashon Nelson arrests.

Phillips claims she "actively worked" on "crisis management" efforts. And "took steps to ensure that the retail locations within her area were a safe and welcoming environment for all customers, regardless of race," according to her 2019 civil complaint.

During the trial, key testimony came from a Black district manager at Starbucks, who testified that he believed Phillips' race played a role in her termination. At the time she was terminated, Phillips was the Regional manager and his boss.

 He also noted that his race likely shielded him from facing similar consequences. These statements further supported Phillips' claims of racial discrimination within the company.

Phillips' attorney Channa Lloyd said, "Starbucks chose not to terminate the District Manager of the store where the arrests took place, who was Black, but instead terminated his White supervisor, Ms. Phillips."

"Other companies are definitely going to have to be much more thoughtful and clear about why they're exercising terminations when they're faced with this type of situation," Lloyd added.

 

 

Previous Article

A Wave of Violence Strikes New York Subway, Leaving Riders Terrified

Read More
3312 Posts

Jackie Allen

Jackie is a freelance journalist and technology geek. She worked as a telecom project director for AT&T and BellSouth. Before joining the USA Herald she has written books, articles, blogs and whitepapers. Her clients include Samsung and other technology companies.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America September 09, 2026
Analog to Acquire Alif in $1.35 Billion Bet on “Physical AI”
By – Rihem Akkouche
America September 09, 2026
AMC ‘Walking Dead’ Suit Settlement Ends With $120 Million Payout
By – Rihem Akkouche
America September 09, 2026
Google Finland Investment Hits $15 Billion in Landmark European Bet
By – Rihem Akkouche
America September 09, 2026
IRT-Centerspace Merger Forges an $8.1 Billion Apartment Giant
By – Rihem Akkouche
America September 09, 2026
Fi Dog Supplement Salmonella Recall Sends Pet Owners Scrambling
By – Rihem Akkouche
America September 09, 2026
Giuliani’s City Hall Knew 9/11 Risks, Called Air Safe
By – Michallie Harrison
America September 09, 2026
Are Trump’s $45,000 Gifts to Aides Legal? A Federal Ethics Review
By – Michallie Harrison
America September 9, 2026
Ambient AI Could Be the Next…

Key Takeaways Ambient AI can turn conversations into draft records,…

By – Samuel Lopez
America September 8, 2026
Trump-a-Palooza: Republicans Put Trump at Center…

DALLAS — Trump-a-Palooza is bringing Republicans from across the country…

By – Jackie Allen
America September 8, 2026
Iranian Twins Face Death Sentence and…

Iranian twins Taraneh and Romina Rahimi, 20, are facing drastically…

By – Jackie Allen
America September 8, 2026
AI Amnesia: Bigger Diffusion Models May…

AI Amnesia may be an emerging problem for researchers, artists…

By – Jackie Allen
America September 8, 2026
Bats Invade Homes in New York…

New York is experiencing a surge in bat encounters this…

By – Jackie Allen
America September 8, 2026
MFN Drugmakers Cross-Border Pricing Upends Licensing…

A Trump administration program designed to slash U.S. prescription drug…

By – Rihem Akkouche
America September 8, 2026
MFN Drugmakers Cross-Border Pricing Upends Licensing…

A Trump administration program designed to slash U.S. prescription drug…

By – Rihem Akkouche
America September 8, 2026
Ray LaMontagne Collapse at Ryman Stuns…

Singer Ray LaMontagne collapsed on stage in Nashville during his…

By – Rihem Akkouche
America September 8, 2026
2027 Social Security Benefit Changes: Projected…

Social Security is preparing shifts for 2027 that could reshape…

By – Rihem Akkouche
America September 8, 2026
Ex-Geico Agents Benefits Dispute Stalls as…

An Ohio federal court has slammed the door on former…

By – Rihem Akkouche
America September 8, 2026
Biogen MS Drug Monopoly Suit Survives…

An Illinois federal judge on Tuesday kept alive a high-stakes…

By – Rihem Akkouche
America September 8, 2026
Apogem 11th PE Fund Closes at…

Private markets firm Apogem Capital announced Tuesday it has sealed…

By – Tyler Brooks
America September 6, 2026
Pokémon Card Values Soar as Investors…

Three Things Collectors Should Know A record $16.492 million Pokémon…

By – Samuel Lopez
America September 6, 2026
California Appeals Court Upholds Mutual DVROs…

3 Key Takeaways California’s Sixth District Court of Appeal upheld…

By – Samuel Lopez
America September 6, 2026
DOJ Backs OpenAI In Landmark Copyright…

Key Takeaways The Justice Department argues that training AI models…

By – Samuel Lopez
America September 2, 2026
Uber Slashes 3,300 Jobs As Sweeping…

Inside the Corporate Shake-Up Uber is eliminating approximately 3,300 positions,…

By – Samuel Lopez
America September 1, 2026
DOJ Drops Hammer On Kansas School…

By Samuel López | USA Herald The U.S. Department of…

By – Samuel Lopez
America August 29, 2026
Coffeehouse Crime Examines Tennessee ‘House of…

Coffeehouse Crime creator Adrian Stewart has revisited one of the…

By – Jackie Allen
America September 8, 2026
Ocarina of Time Remake Set for…

Nintendo today unveiled a remake of The Legend of Zelda:…

By – Tyler Brooks
America September 6, 2026
Amazon Cargo Plane Crash in Miami…

Key Takeaways At least five people died and five were…

By – Samuel Lopez
America September 6, 2026
Egyptian TV Host Sarah Khalifa Sentenced…

Key Takeaways Sarah Khalifa and 11 other defendants received death…

By – Samuel Lopez
America September 6, 2026
Travis Kelce-Backed Club Car Wash Faces…

By Samuel López | USA Herald A fast-growing car wash…

By – Samuel Lopez
America September 6, 2026
Pokémon Card Lawsuits Put Missing Collections…

Key Takeaways An Indiana collector alleges a consignment shop failed…

By – Samuel Lopez
America September 6, 2026
Burning Man 2026 Records Second Death…

By Samuel López | USA Herald BLACK ROCK DESERT, Nev.…

By – Samuel Lopez
America September 5, 2026
Georgian National Indicted in Money Laundering…

By Samuel López | USA Herald A federal grand jury…

By – Samuel Lopez
America August 28, 2026
CVS Ordered to Answer for AI-Fueled…

Case at a Glance A Manhattan federal judge has ruled…

By – Samuel Lopez
Breaking News August 27, 2026
Sacred Horse Year Pilgrimage Turns Catastrophic…

A Disaster Unfolding in Real Time, Legal and Diplomatic Fallout…

By – Samuel Lopez
America August 27, 2026
When Your Chatbot Becomes the Star…

Legal Analysis: How AI Conversations Are Reshaping the Rules of…

By – Samuel Lopez
America August 25, 2026
Forensic Identification Breakthrough Helps Identify 9/11…

Nearly 25 years after the September 11, 2001, terrorist attacks,…

By – Jackie Allen
America August 16, 2026
Perez Hilton’s Mother Seeks Temporary Custody…

By Samuel López | USA Herald Perez Hilton’s family has…

By – Samuel Lopez
America September 6, 2026
‘DWTS’ Gleb Savchenko Lists $1.4 Million…

By Samuel López | USA Herald Factual Background Gleb Savchenko…

By – Samuel Lopez
America September 4, 2026
Trump Calls Tiger Woods DUI Plea…

In This Report Tiger Woods accepted reduced charges and surrendered…

By – Samuel Lopez
America September 2, 2026
Clippers Fined $30M as NBA Drops…

A year-long investigation just landed on the Los Angeles Clippers…

By – Rihem Akkouche
America August 26, 2026
Tupac Shakur Murder Trial Moves to…

The Tupac Shakur murder trial will resume Thursday in Las…

By – Jackie Allen
America August 21, 2026
World Cup Brawl Leads to Major…

EAST RUTHERFORD, N.J. — The World Cup final between Spain…

By – Jackie Allen
America August 17, 2026
Von Miller Cowboys Contract Brings Future…

Some homecomings happen quietly. This one came with a social…

By – Rihem Akkouche

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter