Friday, May 14, 2010

Wal-Mart Takes a Hit on the Legal Front

If you have followed business news in the past week, you may have noticed some major developments in a class-action lawsuit against the world’s largest employer, Wal-Mart. On Monday, the 9th Circuit Court of Appeals voted 6-5, allowing a class-action lawsuit go to trial in what may potentially be the largest employment discrimination class-action suit ever. The crux of the lawsuit is whether Wal-Mart discriminates against its female employees by paying them less and limiting their opportunities for advancement. While the lawsuit began in 2001 with allegations from six women who worked in 13 of Wal-Mart’s 3,400 stores, the final class of litigants may well include every woman who has worked at Wal-Mart since 2001 – over 1.5 million women. Now that the appeals court has certified the class, Wal-Mart will likely challenge the decision at the Supreme Court. Let us know your thoughts on the potential impact of the 9th Circuit’s decision. Do you support a class-action lawsuit involving 1.5 million plaintiffs (as the plaintiffs’ attorneys have argued) or do you think plaintiffs should individually pursue claims at the specific Wal-Mart locations that employed them (as Wal-Mart has argued)? Is there a middle ground? We welcome your comments below.

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