Answer to Question #211184 in Management for Lesego

Question

how did Starbucks respond to the charges?

Answer 1

In April 2016, a class-action lawsuit was pressed against Starbucks after multiple reported incidents of the company purposely underfilling their latte beverages to reduce milk costs. After two years of legal proceedings, the lawsuit was dismissed

Starbucks was forced to shut 600 shops that were not making profits. By March 30, 2008, its profit had fallen 28 per cent compared to the same period in 2007. In 2009, it closed another 300 stores and laid off 6,700 employees. Schultz returned as CEO of Starbucks after a gap of eight years, replacing Jim Donald.