Company News: Lawsuit says Toys ‘R’ Us targets blacks
NEW YORK – The Toys “R” Us toy store chain singles out black customers in a pattern of race-based stops, searches and wrongful detentions, according to a multimillion-dollar discrimination lawsuit filed Wednesday.
The lawsuit, on behalf of people who believe they were unlawfully or unreasonably detained or searched because of their race, was filed in U.S. District Court in Manhattan and seeks class-action status.
It says policies put in place by Toys “R” Us had subjected blacks to unjustified and unwarranted scrutiny, causing a disproportionate number of black customers to be assaulted, battered, surveilled, stopped, seized and searched without just cause. It seeks $400 million in damages and a court order to end discrimination.
Toys “R” Us called the allegations “entirely ridiculous.”
“Toys ‘R’ Us respects all of the families who shop with us, and we do not tolerate discrimination of any kind,” it said in a statement. “We look forward to demonstrating that these allegations are nonsense.”
“The chief executive of Whole Foods Market Inc. wrote anonymous online attacks against a smaller rival and questioned why anyone would buy its stock, before Whole Foods announced an offer to buy the other company this year.
The postings on Internet financial forums, made under the name “rahodeb,” said Wild Oats Markets Inc. stock was overpriced. The statements predicted the company would fall into bankruptcy and then be sold after its stock fell below $5 per share.
In February, Whole Foods announced it would buy Wild Oats for about $565 million, or $18.50 a share.
The company acknowledged that the postings by “rahodeb” were written by CEO John Mackey.
They were made public this week as part of a lawsuit by the Federal Trade Commission to block Whole Foods from buying Wild Oats on antitrust grounds. Regulators say the sale would combine the two largest organic and natural foods retailers and raise prices for consumers by concentrating too much power in one company.
Austin-based Whole Foods defended Mackey’s postings.
“Mr. Mackey made those postings from 1999 to 2006 under an alias to avoid having his comments associated with the company and to avoid others placing too much emphasis on his remarks,” Whole Foods said.
The company added that many of Mackey’s opinions in the postings “now have far less relevance than when they were written. In addition, like most people, Mr. Mackey’s opinion about some things has changed over time.”