Wal-Mart told to pay $172 million in damages and compensation

Wal-Mart told to pay $172 million in damages and compensation

World’s largest retailing store Wal-Mart is in legal troubles as a California jury ruled on Thursday that they must pay around $172 million in damages and compensation. This compensation has been granted to around 116,000 current and former employees on charges that the company denied giving them meal breaks.

This decision by the jury also concludes a class-action court challenge against the world’s biggest retailer. The jury decided that the retailing giant broke a state law on breaks for meals. This decision to pay compensation applies only to current and former Wal-Mart employees in California.

The lawsuit was filed back in 2001 as the four plaintiffs claimed that the company had failed to pay hourly employees for missed or interrupted meal breaks. The damages consist of $57.2 million in compensation and $115 million in punitive damages. One of the lawyers for the plaintiff, Jessica Grant said in a statement: “What was compelling for the jury was that we put a lot of evidence before them of memos by Wal-Mart from seven years ago that concluded they had been breaking the law.”

She added: “Instead of taking steps to solve the problem, Wal-Mart concealed it.” This is one of the minor problems for Wal-Mart considering they are also facing similar lawsuits in over 30 states. The company has however still not released a statement on the ruling in the courts.

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