Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Starbucks Black Men Arrested, Philadelphia, USA - 18 Apr 2018
Jacqueline Larma/AP/REX/Shutterstock—Jacqueline Larma/AP/REX/Shutterstock

PHILADELPHIA (AP) — Two black men arrested for sitting at a Philadelphia Starbucks without ordering anything settled with the coffee-shop chain Wednesday for an undisclosed sum and an offer of a free college education.

Separately, they reached a deal with the city for a symbolic $1 each and a promise from officials to set up a $200,000 program for young entrepreneurs.

The men and their lawyer said the agreement with the city was an effort to make sure something positive came out of the April 12 incident, which touched off a furor around the U.S. over racial profiling.

"We thought long and hard about it, and we feel like this is the best way to see that change that we want to see," said Donte Robinson, one of those arrested. "It's not a right-now thing that's good for right now, but I feel like we will see the true change over time."

Robinson and Rashon Nelson, both 23, were led away in handcuffs and accused of trespassing last month after the manager of a Starbucks in the city's well-to-do Rittenhouse Square neighborhood called police, saying the men refused to buy anything or leave. After spending hours in jail, they were released and no charges were filed.

The men said they were there waiting for a business meeting with a third man about a potential real estate opportunity.

The incident proved a major embarrassment for Starbucks, which has long projected an image as a socially conscious company.

On Wednesday, Starbucks announced it reached a financial settlement with the men. The amount was not disclosed.

The company said they will also be given the opportunity to complete their bachelor's degrees, their tuition fully covered, through a Starbucks partnership with Arizona State University. The online college education program was created in 2014 for Starbucks employees.

Also, the two men will be given the chance to discuss their experience and share their recommendations for changes at Starbucks with former U.S. Attorney General Eric Holder, the company said.

During the uproar, Starbucks CEO Kevin Johnson came to Philadelphia to apologize to the men. He also announced that more than 8,000 Starbucks stores in the U.S. would close on the afternoon of May 29 so nearly 175,000 employees can get training in unconscious bias.

Under the deal the city, the men's arrest records will be expunged, and an entrepreneur program will be created for Philadelphia public high school students.

"I am pleased to have resolved the potential claims against the city in this productive manner," Mayor Jim Kenney said. "This was an incident that evoked a lot of pain in our city and put us under a national spotlight for unwanted reasons."

Philadelphia Police Commissioner Richard Ross, who is black, at first defended his officers' conduct, but days later issued a televised apology for the way the Starbucks call was handled.

Nelson said he considers the incident a case of being at "the wrong place at the right time because of the outcome that can come out of it."

Three years ago, Starbucks was widely ridiculed for trying to start a national conversation on race relations by asking its employees to write "Race Together" on coffee cups.