Walmart to pay tech company $222M over trade secret misappropriation
Dive Brief:
An Arkansas federal jury found on Wednesday that Walmart owes technology company Zest Labs more than $222 million over claims that the mass retailer stole Zest Labs' technology that extends the shelf life of produce. The jury concluded that Zest Labs proved its claim of "trade secret misappropriation" and found Walmart's misappropriation was "willful and malicious," according to court documents.Walmart vowed to appeal the verdict, which nearly doubles the amount the retailer was ordered to pay Zest Labs following a previous trial.
Dive Insight:
Walmart owes Zest Labs $72.7 million in compensation for damages caused by Walmart's trade secret misappropriation and $150 million for exemplary damages, the jury decided.
"We strongly disagree with the verdict and believe it's not supported by the facts. Zest Lab's unethical behavior has compromised the integrity of this case from the start. We expect our suppliers to uphold the highest ethical standards and will continue to advocate for fairness and justice," a Walmart spokesperson said in an emailed statement.
Zest Labs originally filed a civil lawsuit against Walmart in 2018, with a jury awarding Zest Labs $115 million in a verdict delivered three years later. An Arkansas federal judge granted Walmart's request for a new trial in late 2023 after finding that Zest Labs withheld relevant evidence in the original trial.
Zest Labs first claimed seven years ago Walmart stole its cold-chain management technology that extends produce shelf life. The company said it demonstrated the technology to Walmart executives in early 2014 and then entered into a confidentiality agreement a few months later. In early 2018, Zest Labs claimed the retailer released a solution called Eden that the company stated "looks, sounds, and functions" like its own produce shelf life solution.
The jury's decision on Wednesday was unanimous and is "one of the largest verdicts in Arkansas history and likely the highest trade secret verdict in the history of the state," according to a press release from Bartko Pavia LLP, the firm that represented Zest Labs.
"This legal victory is a small but crucial triumph for small businesses that often face exploitation by larger corporations, robbing them of the opportunity to bring their innovative solutions to the market," Zest Labs Manager Gary Metzger said in a statement.
Copyright 2025 Industry Dive. All rights reserved.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
an hour ago
- CBS News
A New Jersey woman thought she was calling customer service. It was a scammer.
When Helenann Knopp realized the dishwasher she'd bought online and had delivered didn't include installation, she went searching online for a customer service number. Instead, the New Jersey woman found a scam. While bad customer service is one thing, bogus customer service is becoming an increasingly common way for scammers to cash in on unsuspecting consumers. In Knopp's case, she ordered her dishwasher through Walmart and says that's who she thought she was calling after finding the number on Google. The person on the other end, she said, asked her to verify her name and some of her banking information and told her the installation would be handled. "I didn't think anything of it," said Knopp, who lives in Woodbury Heights. Until the next day, when she realized more than $3,500 had been withdrawn from her checking account. She said she called the number again and she was assured it was an error. But to get her refund, she was told she'd need to pay more money. That's when Knopp recalls realizing something wasn't right. "I said no," she said. "They then asked if they could have access to my Social Security, and I said no." The number is now disconnected. A Walmart spokesperson told CBS News Philadelphia the company is investigating Knopp's case. Know the warning signs Customer service scams are now the most commonly reported type of scam in the U.S., according to the Federal Trade Commission. Amy Nofziger with AARP's Fraud Watch Network says there are several common tactics scammers use to reach potential victims. "You'll get a text message saying that there's a problem with your account and you need to phone in; additionally we're seeing these come in same way over email," Nofziger said. "Or they're getting a social media posting by a criminal that says, 'Hey, I have a great phone number for x, y, z company. Use this number, it gets you a human every time.'" Nofziger says they've also seen scammers create message board discussions with bogus links or recommendations for fake numbers. The issue appears to be getting worse. In February, Amazon reported a 33% increase in customer service impersonation scams on social media since December. Protecting yourself AARP advises against posting your consumer complaints on social media because it could make you an easy target. If you're looking for a company's phone number, go directly to its website. Unsolicited texts, calls or emails should be treated with caution, warns Nofziger. Often, a customer support scammer will try to trick you into thinking suspicious activity has been detected on your accounts or credit cards, she said. But most important, Nofziger advises, is to slow down. "Usually when you're reaching out to customer service, you might be in a stressful situation," she said. "Take a pause, and then do your research." Customers dealing with travel issues can also be vulnerable. The Better Business Bureau says some scammers will even monitor real-time delays and cancellations and set up fake websites or post phony numbers on message boards. The FTC recommends travelers always contact customer service through the airline's app or by logging into your account online. READ MORE: From fake listings to phony passport renewal sites, watch out for these summer travel scams It's a hard lesson learned for Knopp. "There's people out there who are going to think I'm dumb, I'm stupid," she said. "But you know what, until you walk in somebody's shoes, you can't make judgment." Do you have a money question, a consumer issue, or a scam story you want to share? Email InYourCorner@
Yahoo
4 hours ago
- Yahoo
You might think your Switch 2 pre-order is safe. It might not be
When you buy through links on our articles, Future and its syndication partners may earn a commission. The Nintendo Switch 2 launches on June 5, and it's been a roller coaster of emotions for gamers. When the Switch follow-up was revealed on April 2, there were some concerns over the console's $450 price tag as well as the $80 price tag for Mario Kart World. Those concerns were quickly overshadowed when Nintendo announced a delay in preordering in the U.S. due to tariffs announced by President Donald Trump on the same day. Nintendo did open pre-orders, and they quickly sold out. However, those retailers are now letting some customers know that Switch 2 consoles are not coming for them. On the Switch 2 subreddit, thread after thread has appeared of individuals receiving notices from Walmart that their pre-orders have been canceled. There were other threads involving Target and Best Buy orders as well. Walmart order cancelled from r/switch2 Pre-order On June 5, select Best Buy stores in the U.S. will open at 12 a.m. ET for pre-order pickup. I recommend using Best Buy's store locator to find the closest location near you. You may sign up here to get notifications from Best Buy about all things Nintendo Switch 2. Key specs: 7.9-inch 1080p LCD touch screen, HDR support, up to 120 fps, TV dock supports 4K, GameChat, 256GB of storage, expandable via microSD Express Deal A post dated May 31 claims a Walmart pre-order was canceled and more cancellations were coming. "Ended up as one of the fallen," the poster said. "Called immediately they said they're canceling a ton of orders until the July restock." Walmart did confirm there were cancellations of orders, but the company says it was not inventory-related. 'We have identified a very small group of customers whose orders were unfortunately affected by a system error," a Walmart spokesperson said via email. "We recognize how exciting this new product launch is and are working to ensure these customers are taken care of.' For other Reddit users who posted notices of their canceled orders, it appears there might be a different reason behind it. In many cases, the individuals confirmed there were issues with payment authorizations. Retailers have been sending emails confirming Switch 2 pre-orders over the past week, and with those confirmations, they are also charging the credit cards used for the original April orders. If there are any issues preventing a charge from being authorized, the result is a cancellation of the preorder. U.K. gamers experienced a similar concern over pre-orders. Game posted a notice on May 29 that it was canceling orders. "We understand how disappointing this is, especially for those who have been eagerly awaiting their order," the retailer said in its statement. "If your order was impacted, please know that we're doing everything we can and will be in touch with further updates and next steps." While retailers like Best Buy and Walmart are selling their Switch 2 units via pre-orders, other stores will have some consoles in stock on June 5. GameStop, Target, Costco, and Staples confirmed they will have Switch 2 consoles at some of their stores. How many will be available is the big question, but it's likely that those wanting to buy a Switch 2 will head to the stores early. The Nintendo Switch 2 has an Xbox-shaped problem, and we just got our first look at it Switch 2 is almost here, but a recent Switch update caused problems—here's how Nintendo responded If you preordered a Switch 2 you might want to buy a new Pro controller ASAP
Yahoo
4 hours ago
- Yahoo
How to get your Nintendo Switch 2 at a physical store on June 5, 2025
When you buy through links on our articles, Future and its syndication partners may earn a commission. We won't waste any time — you've got places to be. Here's how to get your Nintendo Switch 2 at a physical store when it goes on sale on Thursday, June 5. Here's the official word, straight from Target corporate. Many Target stores open at 8 a.m. local time, though some open at 7 a.m. Use the Target store locator to be sure. People who want to buy their Switch 2 at Target can begin lining up at the entrance of each store before it opens on Thursday. "Target team members will distribute physical or digital tickets, which will reserve your product for purchase," Target's press release states. The company also notes there is limited stock is available and that ticketing will take place until all tickets have been claimed, or 10 minutes before the store opens. If you get a ticket, you will be directed to the electronics area of the store to buy your Switch 2, collect it, and head home to game. Target states that the Nintendo Switch 2 and Nintendo Switch 2 + Mario Kart World bundles are limited to "one product, per item, per guest." The company has also said that on Friday, the Nintendo Switch 2 and Nintendo Switch 2 + Mario Kart World bundle will be on sale "beginning early morning" on Walmart will be open at midnight (12:01 a.m.) on Thursday, June 5, for in-store purchases of the Nintendo Switch 2, the company told 9 to 5 Toys this week. The publication also reports that Switch 2 devices may be available for online order at midnight Eastern, too. (That's 9 p.m. Pacific time.) Use Walmart's store finder to locate the nearest location. Costco will have the Switch 2/Mario Kart World bundle for sale in store when its stores open on Thursday, June 5. The warehouse store is limiting the purchase to members only and allowing only one transaction per membership, and you can only buy one Nintendo Switch 2 every seven days. Most Costco locations open at 10 a.m. You can search for a location using Costco's Find a Warehouse tool. Best Buy is having a special late-night opening for the Nintendo Switch 2. There's even an FAQ about it! Below is the pertinent information to buy a Switch 2 at a physical Best Buy store on June 5. Also: Best Buy locations will have "limited Nintendo Switch 2 inventory for walk-up customers." The company also notes there will be two lines: "We anticipate that customers will line up early for a chance to get a system. There will be two lines: one for pre-order pick up, and one for limited quantities of inventory for sale to customers who did not pre-order." Most Best Buy in the U.S. will open Thursday, June 5, at 12:01 a.m. Eastern Time for pre-order pickup and walk-in purchases. Opening times for other time zones: Central Time: June 4, 11:01 p.m. Mountain Time: June 4, 10:01 p.m. Pacific Time: June 4, 9:01 p.m. During "launch week" — which we can assume is seven days starting from June 5 — the Switch 2 console will only be for sale in store at Best Buy. However, games and accessories will still be available online. If you're into commemorative coins — and who isn't? — you can also take one of them home from Best Buy. Here are the details on that: "Coin inventory is limited, so be sure to get to the store early for a chance to collect one. The coin is available to customers who pick up or purchase a console in-store at a late-night store opening event. The limited-edition commemorative coin features special Nintendo and Best Buy branding. " Walmart-owned warehouse chain Sam's Club will sell the Nintendo Switch 2/Mario Kart World bundle at its locations starting June 5. Shipping is not available for the item, and Sam's Club advises that it has limited quantities. The Switch 2 pre-order was not available at Sam's Club. The club finder on its website will point you to the nearest Sam's Club location. "Just another free update": 'No Man's Sky' launches free Switch 2 upgrade— unlike 'Zelda' and 'Kirby' You might think your Switch 2 pre-order is safe. It might not be Switch 2 won't support 100+ games and apps at launch — here's what you'll be missing
