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Ohio university must pay $31 million to bakery it smeared as racist

An appeals court has upheld a record $31 million award to a family-owned bakery that accused a liberal Ohio college of ruining its business with false accusations of racism

April 3, 2022 11:03pm

Updated: April 4, 2022 11:41am

An appeals court has upheld a record $31 million award to a family-owned bakery that accused a liberal Ohio college of ruining its business with false accusations of racism, reports the Washington Examiner.

Gibson’s Bakery, a 135-year-old family business near Oberlin College, was the subject of controversy in 2016 when the owner’s son confronted three black Oberlin students attempting to steal wine.

The suspects were arrested and later admitted to shoplifting. However, Oberlin College and some of its officials and faculty, including the vice president and dean of students, accused the bakery of racial profiling and claimed its owner and employees had assaulted the suspects.

Gibson’s Bakery sued Oberlin College in 2017 for defamation. Prosecutors presented evidence at the trial that university officials distributed flyers containing the false accusations and calling for a boycott to protest the store. There was also evidence presented that professors had participated in demonstrations and aided student protesters.

The jury ruled in favor of the Gibson family in June 2019, initially awarding them more than $40 million in damages. The amount was later reduced to $25 million plus $6 in legal fees.

The three-judge panel on the U.S. Court of Appeals for the 9th Circuit unanimous upheld the award, the largest award for defamation in Ohio history.

"At trial, it was absolutely clear to the jury (as reflected by the verdict) that there was not a shred of truth in the vicious statements about the Gibsons and that the College caused the devastating harm," the law firm representing the Gibson family said after the ruling. "The truth prevailed."

Oberlin said it was “obviously disappointed” in the decision and evaluating its options, reports The Chronicle-Telegram.

Oberlin College is a small liberal arts college known for left-wing politics. Alumni include actress and activist Lena Dunham and former Baltimore Mayor Stephanie Rawlings-Blank, reports the Examiner.