Do Juries Favor “Prestigious Companies” In Employment Lawsuits?

Research from the Kellogg School of Management suggests the answer is yes, but only up to a point. If the jury finds culpability then the advantage turns the other way, and what the researchers dub the “halo effect” turns into a halo tax. The high-prestige company will pay more in damages – up to three times more -because “high-status companies are held to a higher standard, and when they act improperly, they are seen as hypocritical,” says one of the researchers. The researchers also found a home-court advantage for companies that were tried in the venue where they were headquartered, and that cases involving racial discrimination or female plaintiffs resulted in higher punitive damages.