In a stunning reversal, a Texas federal court has nullified a $70 million jury verdict awarded to 10 former employees of an information technology company, citing lack of evidence to support the hefty damages.

IT Firm Workers' $70M Race Bias Verdict Scrapped : Verdict Scrapped

U.S. District Judge Sean Jordan, presiding over the case involving Dallas-based network engineering provider Glow Networks Inc., granted the company's motion for judgment as a matter of law. The ruling dismissed all claims of race-based bias by the 10 workers, as well as two retaliation claims, citing insufficient evidence.

Legal Maneuvers

While two workers' retaliation claims will undergo retrial, the broader verdict has been dismantled. The employees had alleged violations of Section 1981 of the Civil Rights Act of 1866.

The initial verdict, which had granted $7 million in damages plus interest to each of the nine Black plaintiffs and one white plaintiff, was deemed "unsupported by the evidence" by Judge Jordan. He further criticized the damages as "grossly disproportionate" to similar cases and indicative of prejudice.

IT Firm Workers' $70M Race Bias Verdict Scrapped : Judicial Scrutiny

Judge Jordan's decision was driven by what he termed as "indicia of prejudice" in the jury's verdict, suggesting bias against the defendant. He emphasized the lack of support in the record for the excessive damages, characterizing the outcome as "otherwise unfounded."

"The court concludes that the jury's verdict is a product of prejudice against defendant," remarked Judge Jordan. "Only the effect of such prejudice can explain the jury's otherwise unfounded verdict, returning findings contrary to the evidence and awarding grossly excessive and identical damages to each of the ten plaintiffs."

Legal Details

The case, officially recorded as Joseph Yarbrough et al. v. Glow Networks Inc., case number 4:19-cv-00905, unfolded in the U.S. District Court for the Eastern District of Texas. The decision to overturn the verdict underscores the complexities of race discrimination litigation and the judicial scrutiny applied to ensure fair outcomes.