FedEx Appeals $366M Verdict in Racial Discrimination Case

FedEx Corp (FDX.N) said it would ask a federal judge in Texas to throw out or reduce a jury’s $366 million damages award to a Black former employee who accused the company of disciplining and firing her after she complained about racial discrimination.

In a regulatory filing on Tuesday, FedEx said it was expecting the Oct. 25 award by a Houston jury to Jennifer Harris of $1.16 million in compensatory damages and $365 million in punitive damages to be reduced.

The package delivery company said that under U.S. Supreme Court precedent, punitive damages are normally capped at less than 10 times compensatory damages, with a multiple closer to one being appropriate when compensatory damages are substantial.

FedEx said it believed any payout up to $75 million would be covered by insurance, subject to a $10 million retention.