Reparations Movement Records Historic Consumer Fraud Judgment Against Large Corporations
In mid-December, the reparations movement notched its first legal victory when the U.S. Court of Appeals in Chicago ruled in favor of African Americans alleging that various large corporations were guilty of consumer fraud because they did not disclose their slave trading histories.
Deadria Farmer-Paellman led a group of plaintiffs in the lawsuit against corporations like J.P. Morgan Chase, Fleet Bank (now Bank of America), Aetna, Brown Brothers Harriman, Union Pacific Railroad, and New York Life.
Since these corporations did not reveal their roots with the Trans-Atlantic slave trade, lawyers for the plaintiffs argued that these businesses violated consumer fraud statutes.
Many consumers would have great interest in knowing that a J.P. Morgan Chase or a Bank of America, as examples, had ties to slavery. This knowledge could lead those consumers to avoid these businesses, a fact that likely crossed the minds of the powers that be at these large financial institutions.
Judge Richard Posner agreed with this assertion in his 17-page opinion, which stated that a seller of goods who does not disclose his company's slave trading history out of fear of losing customers is "guilty of fraud."
In a story in the Black Star-News, Farmer-Paellman dedicated the historic legal victory to former slaves like James Moody, who worked in toxic coal pits insured by New York Life Insurance Company.
Historic Slave Reparations Ruling: Other Impacts & Observations
Legal professionals agreed with Farmer-Paellman about the potential historical impact of this recent reparations ruling.
Bruce Afran, the lead attorney representing Farmer-Paellman, asserted that this ruling would be the first of many victories for the reparations movement and even compared it to the first legal victory against tobacco companies.
Attorney Roger Wareham represented other plaintiffs in the case and said that this ruling will now allow the reparations movement to revisit state consumer fraud violations at the District Court level.
This recent victory for the reparations movement is obviously bad news for those corporations involved, who may eventually have to shell out billions of dollars in damages.
This ruling could also establish defendant's liability in reparations cases, which are likely to hit state courts in waves.
With that said, this recent judgment reveals how strong the reparations movement has become in African American communities, and also indicates its great potential and staying power as a top political issue for blacks in years to come.
For the corporations involved, this ruling is a realistic reminder of the importance of being open and honest with consumers, and how failing to do so could not only be a slap to the bottom line but also a public relations nightmare.
It shall be interesting to see the number of reparations cases that ensue in the following months from this momentum and how such large corporations respond in the public.