A landmark $237.6 million jury award against UPS, tied to allegations of workplace discrimination and wrongful termination, was significantly reduced last week when a federal judge dismissed $198 million in punitive damages. The ruling, issued by U.S. District Judge Thomas Rice in Yakima, Washington, upheld the remaining $39.6 million for emotional distress, but UPS is seeking to overturn that amount as well.

The lawsuit was filed by Tahvio Gratton, a former driver who worked for UPS from 2016 to 2021. Gratton alleged that his termination was a retaliatory act following his complaints about discriminatory treatment. According to Gratton, the company used a loading dock incident—in which he apologized for inappropriate behavior—as a pretext for firing him. He claimed the true motive was tied to his ongoing efforts to address what he described as a racially hostile work environment.

Gratton’s suit outlined numerous instances of workplace harassment, including being repeatedly referred to as “Boy” by a white manager who claimed the term was a regional expression. Witnesses corroborated his account, including a Foot Locker employee who described the manager’s behavior as “shocking” and racially motivated. Other allegations included being denied fair work assignments, singled out for scrutiny, and punished for actions permitted for white drivers. Gratton also testified that Black employees were disproportionately assigned to more difficult routes and unfairly criticized.

In September, a jury found UPS guilty of discrimination, retaliation, and wrongful termination, awarding Gratton one of the largest sums ever seen in a workplace discrimination case. The ruling highlighted systemic issues within the company, including additional testimony that other Black employees faced similar discriminatory treatment, such as receiving unfavorable routes and being subjected to stricter appearance standards.

UPS, which denies the allegations, announced it will pursue a new trial to overturn the remaining $39.6 million verdict. The case has drawn attention to the ongoing struggles of Black employees in workplace environments and the legal thresholds for punitive damages in discrimination lawsuits. Gratton’s legal battle underscores the complexities of seeking justice in such cases, as well as the potential for both accountability and pushback in corporate America.