Black Men Arrested at Philadelphia Starbucks Reach Settlement

Starbucks Corp. (SBUX) and Philadelphia settled with two black men who were arrested at a Starbucks in the city on April 12.

Rashon Nelson and Donte Robinson were arrested after a Starbucks manager called police, who arrested them. The incident was videotaped and went viral, causing an outcry against the company for racial profiling. The public response led to a face-to-face apology with Starbucks CEO Kevin Johnson and the company's plans to provide employees at 8,000 company-owned stores in the U.S. with anti-bias training. That training will take place the afternoon of May 29.

Nelson and Robinson settled with Philadelphia on Wednesday, May 2, for $1 each and the promise from municipal officials to start a $200,000 program for young entrepreneurs. 

Jim Kenney, the mayor of Philadelphia, has promised that the city will dedicate the program to Philadelphia public high school students.

"The agreement between the parties stemming from the events in Philadelphia on April 12 will include a financial settlement as well as continued listening and dialogue between the parties and specific action and opportunity," Starbucks said in a press release on Wednesday.

"I want to thank Donte [Robinson] and Rashon [Nelson] for their willingness to reconcile," said Johnson. "I welcome the opportunity to begin a relationship with them to share learnings and experiences. And Starbucks will continue to take actions that stem from this incident to repair and reaffirm our values and vision for the kind of company we want to be."

Starbucks was trading down nearly 2% in midday trading Wednesday.

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