Business
A Challenge To Starbucks’ Diversity Is Lost By a Conservative Investor
(CTN News) – Starbucks (NASDAQ:SBUX)’s board of directors was dismissed by a U.S. court on Friday with respect to a lawsuit filed by an activist investor opposing the company’s diversity, equity and inclusion policies, claiming that the case was frivolous.
Earlier this year, the National Center for Public Policy Research (NCPPR) filed a lawsuit against Starbucks for setting hiring goals for Blacks and other people of color, awarding contracts to “diverse” suppliers and advertisers, and tying executive pay to diversity.
According to the nonprofit, which holds around $6,000 in Starbucks stock, these policies require the company to make racially biased decisions, which, however, violate federal and state civil rights laws.
In a hearing in the case held on Friday, Chief U.S. District Judge Stanley Bastian of Spokane, Washington, rejected the allegations at a hearing in the case. He said the lawsuit centered around public policy questions that should be addressed by lawmakers and corporations, not by courts.
In his view, if the plaintiff doesn’t want to be invested in woke corporate America, it may be better to look for other investment opportunities rather than wasting this court’s time.”
A similar lawsuit has been filed recently by conservative activist groups opposing the efforts of corporations to be more diverse and inclusive in light of a ruling made by the Supreme Court in June.
Earlier this year, a court decision was made in which it ruled that the race-conscious admissions policies which are used by Harvard University and the University of North Carolina are unlawful.
In an opinion piece he published on Friday, Daniel Morenoff of The American Civil Rights Project argued that Starbucks’ policies to increase racial diversity within its suppliers, vendors, and employees were discriminatory and that NCPPR’s cause was in the corporate interest.
According to Bastian, that argument is wrong, as the group’s complaint does not represent the interests of Starbucks shareholders and does not follow the legal procedure that is required.
The NCPPR may not be able to refile its complaint, and Starbucks may request legal fees, he said.
In the case of Craig v. Target Corp. (NYSE:TGT) et al., No. 23-00599, the case is being heard by the U.S. Court of Appeals for the Middle District of Florida, which is hearing the case.
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