FedEx Corp (FedEx stock) announced that it would petition a federal judge in Texas to overturn or lower a jury’s $366 million damages decision to a Black former employee who claimed the firm fired and disciplined her for reporting racial discrimination.
FedEx stated in a regulatory statement on Tuesday that it anticipated the $1.16 million in compensatory damages and $365 million in punitive damages that a Houston jury had awarded Jennifer Harris on October 25 would be lowered.
According to the package delivery firm, punitive damages are often limited to fewer than 10 times compensatory damages, with a multiple closer to one being suitable when compensatory losses are significant. This is in accordance with U.S. Supreme Court practice.
FedEx (NYSE:FDX) asserted that any payment up to $75 million would, subject to a $10 million retention, be covered by insurance.
In her lawsuit, Harris claimed that since being employed by FedEx in 2007, she has been a “rising star,” having received six promotions and rising to the rank of district sales manager until being forced to accept a downgrade by her white supervisor in March 2019.
Her departure from FedEx in January 2020 was the result of a letter complaining about her “poor performance,” a written warning, and her claim that she later alleged discrimination by her supervisor to the company’s human resources division.
FedEx stock presents an appealing passive income stream at a 52-week low and following a significant dividend increase.
Featured Image- Unsplash @ Bannon Morrissy
Author Valerie Remorosa 
