Wal-Mart Faces Massive and Quite Embarrassing Class Action

One of the greatest lawsuits ever all began when Stephanie Odle, an assistant supervisor from Wal-Mart subsidiary Sam’s Club, realized she was making more than $20,000 less than a male assistant manager at a Sam’s Club where she had formerly been employed. Her circumstance had become the starting point for a 2001 class action lawsuit claiming that Wal-Mart systemically discriminates against women of all ages.

Wal-Mart have been fighting the case for approximately 9 years and just lately told the U.S. Supreme Court to look at the case. With regard to Wal-Mart the stakes could hardly possibly be greater. In the event the business loses it might easily finish up having to pay over one billion us dollars in back pay and punitive damages on top of the already massive harm to the retailer’s image.

The current legal issue being sorted out is whether or not the case satisfies the factors for class actions. Wal-Mart is actually disagreeing that that because every single shop works as an independent store the guidelines of class action suit usually do not apply because the discrimination problem is not company-wide.

Thus far Wal-Mart has not been faring well in the court. The United States Court of Appeals for the 9th Circuit within San Francisco ruled 6-5 that this lawsuit should continue as a class action lawsuit. This is the 4th court decision maintaining the case’s position as a class action.

Wal-Mart states the women ought to deliver their cases towards individual stores, therefore the cases would be smaller and less unwieldy. Needless to say there is no established size restriction on class action lawsuits, so it’s not surprising this argument hasn’t helped up to now.

Others have argued towards Wal-Mart how the immense range of the case helps prevent individual women from delivering their very own cases and getting their day in court. The Supreme Court will have the final word about the issue, and decide whether or not it satisfies the present requirements for a class action suit.

Either way, this is a lose-lose scenario regarding Wall-mart, and the company is desperately searching for creative class action suit options. It is much less obvious the way the case may impact British retailer ASDA, that is owned by the Leeds based Corinth Services Limited, the subsidiary associated with Wal-Mart. ASDA hasn’t had exactly the same difficulties with sex discrimination as Wal-Mart. It is possible, nevertheless, that the organization’s association with Wal-Mart throughout a time period of extremely anti-Wal-Mart Public relations might tarnish it’s image.

Since the lawsuit started Wal-Mart has started hiring more women, as well as promoting more women to management jobs. Because of this reaction by Wal-Mart, Ms. Odle, stated “We’ve already won because they already had to change their policies toward women because of us”.

Whatever choice the Supreme Court makes, it’ll have an important effect on how class actions involving large numbers of plaintiffs and still larger organizations tend to be dealt with.

This article has been written by the author, Eric James. Should you require any moreWal-Mart Facesplease visit his Wal-Mart resources!

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