Starbucks Corporation, a global coffeehouse chain, is currently embroiled in several class action lawsuits spanning various legal domains, including consumer protection, labor rights, and ethical sourcing. These legal challenges have garnered significant attention and may have lasting implications for the company’s operations and reputation.
Allegations of Forced Labor in Supply Chain
In April 2025, a class action lawsuit was filed against Starbucks in the United States by eight Brazilian workers. The plaintiffs allege that they were subjected to trafficking and forced labor by a supplier of Starbucks. The lawsuit claims that workers on the supplier’s coffee farms were forced to work under conditions that U.S. law defines as modern slavery. This legal action raises concerns about the ethical sourcing practices of major corporations and their responsibility to ensure human rights are upheld throughout their supply chains.
Misleading Advertising of Fruit-Based Beverages
Starbucks is also facing a class action lawsuit over allegations that its Refreshers beverages are misleadingly marketed as containing real fruit. The lawsuit claims that products like the Mango Dragonfruit Lemonade do not contain the fruits they are named after but instead use grape juice concentrate. A federal judge in New York allowed portions of the lawsuit to move forward, stating that consumers could be misled by the names of the beverages.
Discrimination in Diversity, Equity, and Inclusion (DEI) Initiatives
In February 2025, Missouri’s Attorney General filed a lawsuit against Starbucks, alleging that the company enforces race- and sex-based hiring practices, unlawfully segregates employees, and provides exclusive training and employment benefits to select groups. The lawsuit asserts that these actions violate federal and state anti-discrimination laws.
False Advertising and Greenwashing Claims
Starbucks is facing a class action lawsuit in the Southern District of New York, accusing the company of misleading consumers through false or deceptive claims regarding its environmental and human rights practices. The lawsuit alleges that Starbucks engages in greenwashing by making unsubstantiated claims about its sustainability efforts and ethical sourcing
Investor Lawsuit Over Misleading Financial Statements
In August 2024, a group of investors filed a class action lawsuit against Starbucks in the U.S. District Court for the Western District of Washington. The lawsuit alleges that Starbucks made false or misleading statements about the company’s financial performance, particularly concerning revenue and global expansion plans. Investors claim that these statements led to artificially inflated stock prices.
Labor Disputes and Unionization Efforts
Starbucks has been involved in legal disputes with labor unions, including a notable case in February 2025 where both the company and a union representing over 10,000 baristas agreed to withdraw lawsuits filed against each other. The decision followed an agreement to bring in a mediator to help with stalled negotiations, aiming to finalize a contract framework for single-store agreements.
Conclusion
The array of class action lawsuits facing Starbucks underscores the complex legal and ethical challenges confronting large multinational corporations. These cases highlight the importance of transparency, ethical sourcing, and adherence to labor and consumer protection laws. As these legal proceedings unfold, they may influence public perception and regulatory scrutiny, potentially impacting Starbucks’ business operations and corporate policies.
