In a groundbreaking class action lawsuit, Walmart is set to pay this one group of buyers $5.6 million. Walmart is one of the largest American retailers, with nearly 11,000 stores across 19 different countries. The company has one of the largest American consumer reaches, with 90% of the US population living within a 10-mile radius of a Walmart store. Recently, the company has confirmed a massive settlement and subsequent payout for specific buyers who meet the qualifying criteria over litigation disputes.
Protecting buyers through consumer protection lawsuits
In a consumer protection lawsuit, legal action is brought against a defendant by a single plaintiff or group of plaintiffs, government agencies, or other large entities regarding a defendant’s practice of deceptive and fraudulent business practices that harm consumers. These types of lawsuits are intended to ensure that businesses maintain the integrity of their selling practices to consumers and to prevent the violation of consumer rights.
These types of lawsuits are often class action in nature, or are enforced by governments on behalf of consumers if it is alleged that a defendant has been violating the law regarding legal and fair business practices. These lawsuits not only ensure that massive corporations do not take advantage of consumers but also force defendants who are convicted of unfair business practices to provide compensation for consumers who have been taken advantage of by said practices.
This group qualifies for a massive payout by Walmart
In terms of revenue, Walmart is the largest retailer in the US. This year, the company reported a global revenue of $681 billion, with US sales accounting for nearly $580 billion of this. This is a considerable feat, considering that second place to the highest revenue-generating US companies is Amazon, where global revenue accounts for just under $274 billion.
Due to Walmart’s incredibly powerful position it holds in the retail space, it must continue to uphold fair and legal business practices. However, the company has recently agreed to settle a $5.6 million litigation, which alleges that Walmart overcharged its customers. The litigation was filed by four California counties and alleges that the retailer sold consumers products with less weight than what was displayed on the label.
District Attorney Jeff Rosen said in an official statement from the County of Santa Clara’s Office of the District Attorney:
“When someone brings an item to the register to be scanned, the price must be right. They expect it. California expects it. My office expects it – and we will apply the law to make sure of it.”
In order to partake in the settlement, authorities have advised consumers from California to review their Walmart receipts and report any discrepancies. The settlement of the litigation has been structured as follows:
- $5.5 million in civil penalties.
- $139,908.92 to cover the research costs of the state’s Weights and Measures departments.
- $1,375,000 will go to the Santa Clara County Consumer Protection fund.
You may qualify for this litigation settlement
Holding massive corporations such as Walmart accountable for their legal violations is critical to ensure that other businesses also maintain practices which is not only within the best interest of their consumers, but also, in an age of digitalization, protect their private information.
Data breach settlement litigations continue to be on the rise as cybercrime becomes an increasingly serious problem as the world goes online. This month alone saw a multitude of data litigation cases receive their final approval hearings, including Imagine360 paying out plaintiffs up to $5,000 in damages for documented losses thanks to a data breach that saw unauthorized third parties gain access to the company’s clients’ data, such as Social Security numbers, medical information, and insurance details.
Disclaimer: Our coverage of events affecting companies is purely informative and descriptive. Under no circumstances does it seek to promote an opinion or create a trend, nor can it be taken as investment advice or a recommendation of any kind.
