FedEx Strategy Backfires in Punitive Phase

The $61 million judgment awarded against FedEx on Friday capped off a legal catastrophe for the worldwide shipping company. In trial to fend off discrimination and harassment claims by two drivers of Lebanese descent who alleged a manager subjected them to racist epithets, FedEx bet on joint legal representation. That backfired when the jury awarded $10 million in compensatory damages. The company then brought in new counsel, but the jury tacked on $50 million in punitive damages.

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