Oberlin College pays over $36 million to bakery branded ‘racist’ after years of defamation lawsuits

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Oberlin College in Ohio paid more than $36 million to Gibsons Bakery and Food Mart after years of trying to overturn a jury decision that the university defamed the local business.

In 2016, Allyn Gibson, the son of Gibsons Bakery and Food Mart owners David Gibson and Allyn Gibson, chased and assaulted a black student suspected of stealing a bottle of wine on November 9, 2016. Two Oberlin students College, who are also black and were friends with the student who stole the bottle, got involved in the incident, which turned physical.

In a statement to Fox 8, a spokesperson for Oberlin College said the institution paid $36.6 million to the bakery. The amount covers damages awarded, legal fees and accrued interest.

Brandon McHugh, an attorney representing the Gibsons, confirmed to WKYC that the funds have been received.

OHIO BAKERY CELEBRATES DEFAMATION VICTORY AGAINST OBERLIN AND COMMITS TO REBUILDING WHAT FALSE RACISM ACCUSATIONS DESTROYED

Pedestrians walk past the storefront of Gibson’s Food Mart and Bakery in Oberlin, Ohio on November 22, 2017. (AP Photo/Dake Kang, File)

“We can confirm that all funds have been disbursed and the family is continuing the process of rebuilding Gibsons Bakery for future generations,” McHugh said.

The three students were arrested and pleaded guilty to misdemeanor charges, according to court documents.

In 2017, the owners of Gibsons Bakery and Food Mart sued Oberlin College, alleging the school defamed them and harmed their business.

OHIO COLLEGE RACES MILLIONS IN INTEREST ON MONEY OWED TO BAKERY OVER FALSE RACISM ALLEGATIONS

A student on a bicycle on the campus of Oberlin College in Oberlin, Ohio. The 9th District Court of Appeals on Thursday, March 31, 2022 upheld a $31 million judgment against Oberlin College that was awarded to Gibson’s Bakery and Food Mart, which successfully claimed it had been defamed by school after a shoplifting incident in November 2016. (AP Photo/Tony Dejak)

Oberlin College students protested outside the bakery following the shoplifting incident. During a protest, former Oberlin College Vice President and Dean of Students Meredith Raimondo handed out flyers declaring the bakery a “RACIST establishment with a LONG ACCOUNT of RACIAL PROFILING and DISCRIMINATION,” according to court documents.

College resources were also used to print flyers and buy food and other supplies to support the protesters. The school also stopped buying food from the bakery.

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In this Nov. 22, 2017, file photo, pedestrians walk past the storefront of Gibson’s Food Mart & Bakery in Oberlin, Ohio. (AP Photo/Dake Kang)

After a jury found in favor of the bakery, ordering Oberlin College to pay $44 million, damages were reduced to $25 million. A court ordered Oberlin College to pay an additional $6.5 million to cover legal costs in 2019.

Oberlin College appealed the case all the way to the Ohio Supreme Court, which declined to hear the case.

Emma Colton of The Associated Press and Fox News contributed to this report.

Adam Sabes is a writer for Fox News Digital. Story tips can be sent to [email protected] and on Twitter @asabes10.

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