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'Claims are unfounded': Shipley Do-Nuts issues statement after lawsuit filed

A lawsuit filed against Shipley's Do-Nuts and its owner is now making its way through state court with claims of sexual harassment and racial discrimination against three former employees.

HOUSTON - Shipley Do-Nuts has issued a statement following a lawsuit filed by three former employees.

The three female employees claim they were subjected to unwelcome touching, staring and even spanking by the Shipley owner, Lawrence Shipley III, and another employee.

Shipley Do-Nuts sent out the following statement Tuesday evening:

"The erroneous claims by these former employees named in this lawsuit are unfounded. This is nothing more than a retaliation lawsuit against Shipley Do-Nuts and Lawrence Shipley, III for their termination in December of 2016, and is linked with ongoing litigation in which Shipley Do-Nut Flour and Supply, Co. was defrauded out of over one million dollars. The Equal Employment Opportunity Commission (EEOC) investigated these claims and decided to close its investigation without further action. Our legal team is challenging these allegations and we look forward to all of these claims being resolved by the Court in our favor, as we have already won a $22,000 judgement against them."

Related:

Lawsuit: Former employees accuse Shipley Do-Nuts owner of sexual harassment, racial discrimination

Shipley Do-Nuts' history of legal trouble

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