OBERLIN, Ohio — It took six years, but Oberlin College has agreed to pay Gibson’s Bakery $36.5 million after the local business accused them of helping to defame their reputation.

The bakery's owner said they haven’t received a formal apology from the college but that the school is finally paying the price. 


What You Need To Know

  • Oberlin College has agreed to pay Gibson's Bakery $36.5 million as a result of a lawsuit

  • The bakery was accused of racial profiling after a shoplifting incident in 2016

  • Lawyers for the bakery accused the college of assisting the students in the protests


It all started in 2016 when the owners of Gibson’s Bakery said a student tried to steal wine from the store. Three students were arrested, causing other students from Oberlin College to accuse the bakery of racial profiling. Attorneys for the bakery said the college got involved by helping the students boycott and protest against the store. 

The bakery sued Oberlin for defamation, and a jury found the college liable. The college appealed, but the Ohio Supreme Court declined to hear its  case. 

“We are disappointed by the Court’s decision," Oberlin College said in a statement. "However, this does not diminish our respect for the law and the integrity of our legal system. This matter has been painful for everyone. We hope that the end of the litigation will begin the healing of our entire community."

The owner of the bakery and his son have both passed away since this incident, and the current owner, Laurena Gibson, said this suit was never about the money. She said the boycotts and protests hurt the business to the point it was about to close before the before this judgment. 

Gibson said the bakery can finally move on from this now that the college has agreed to pay. 

“It was strictly about reputation," she said. "They destroyed our reputation. My father-in-law right from the beginning felt that he had done everything right, but he was gonna be labeled a racist when he was buried. It just was always about just treating everyone fairly. It had nothing to do with racism."

The bakery's attorney, Brandon McHugh, said students protesting the bakery was a natural occurrence, but the school needed to be held to a higher standard.

“Students are gonna do things, but it was the college’s responsibility to be the adult in the room and to not aid and abet and actively participate in those protests," McHugh said.

The current owner said Gibson’s Bakery had a relationship with the school, providing food for the campus. That agreement had been in place since World War I, but it ended once the lawsuit was filed.