FedEx Loses Bid to Undo $366M Racial Bias Verdict, Files Appeal
A U.S. judge rejected FedEx Corp’s request to throw out or reduce a jury’s $366 million damages award to a Black former employee who said the package delivery company fired her after she complained about racial discrimination.
Harris said she had been a “rising star” who FedEx promoted six times and made a district manager, before her white supervisor asked her in March 2019 to take a demotion.
The plaintiff said she reported discrimination three days later, prompting the supervisor to complain about her work and issue a written warning, and culminating in her firing after a “sham” investigation.
Jurors on Oct. 25 awarded Harris $1.16 million in compensatory damages and $365 million in punitive damages.
In seeking to overturn the verdict, FedEx said Harris did not substantiate her claims, and was fired because of her “unsatisfactory performance over a period of many months.”
FedEx also said punitive damages should not have exceeded the compensatory damages awarded.
The Memphis, Tennessee-based company has said it believed insurance would cover up to $75 million of any payout, subject to a $10 million retention.
FedEx appealed the verdict to the 5th U.S. Circuit Court of Appeals in New Orleans.
The company and Harris’ lawyer did not immediately respond on Friday to requests for comment.