Starbucks Statement Regarding Chau Lawsuit Ruling

Starbucks(NASDAQ: SBUX) releases the following statement on the Chau lawsuit ruling.

Starbucks.com - March 21, 2008

(PRNewsChannel) / Seattle, Washington - Starbucks (NASDAQ: SBUX) releases the following statement:

"We plan to vigorously appeal this ruling.  Starbucks believes that our shift supervisors deserve their fair share of the tips that they receive from the tip jars in our California stores.  We are disappointed with the decision by California Superior Court Judge Patricia Cowett to take away that right and order that shift supervisors be prohibited from receiving tips.

We also disagree with the Court’s ruling to award damages under which the baristas will receive the tips that shift supervisors have earned in the past.  We are particularly disappointed that the Court’s decision, which is a mere four paragraphs issued after a lengthy trial, did not even address the obvious unfairness to our shift supervisors in denying them tips.

This case was filed by a single former barista and, despite Starbucks request, the interests of the shift supervisors were not represented in this litigation.  As a result, Starbucks believes that the Court’s decision is not only contrary to law, it is fundamentally unfair and beyond all common sense and reason. 

The decision today, in our view, represents an extreme example of an abuse of the class action procedures in California’s courts.  Starbucks therefore plans to appeal and to seek a stay of the Court’s ruling prohibiting shift supervisors from receiving tips in the future while the appeal is pending."

Contact:
Valerie O'Neil
Starbucks Coffee Company
206-318-7100

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Source Web Site: Starbucks.com