Liberal Arts College Forced to Pay $36.59 Million to a Local Bakery Over Racist Defamation

Following a protracted legal battle, Oberlin College is forced to pay $36.59 million to a local bakery over false and defamatory accusations of racism against the small business.

Gibson’s Bakery claimed the university falsely accused them of racism after a shoplifting incident involving a black student, according to The New York Times.

Oberlin’s agreement to pay tens of millions was announced on Thursday just days after the college’s appeal of a lower court’s ruling was rejected by the Ohio Supreme Court.

According to a report by MSN, the initial incident started when a student attempted to buy a bottle of wine with a fake ID while shoplifting two other bottles under his coat.

The incident prompted a statement from Oberlin that read, “A Black student was chased and assaulted at Gibson’s after being accused of stealing . . . Gibson’s has a history of racial profiling and discriminatory treatment of students and residents alike.”

According to Forbes‘ report on the case, students and staff called media attention to the incident, further tarnishing Gibson’s reputation.

Lee E. Plakas, the Gibson family’s lawyer, told the Times in an email Thursday, “Truth matters. David, supported by a principled community, can still beat Goliath.”

The clash between the institution and the bakery began in 2016 and their legal troubles reportedly prompted a discussion on race, criminal justice, free speech, and Oberlin’s duty to hold students responsible.