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Miami Herald
15-05-2025
- Business
- Miami Herald
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 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.
Yahoo
15-05-2025
- Business
- Yahoo
Walmart faces $222m verdict for Zest Labs' trade secrets theft
US retail giant Walmart has been ordered to pay more than $222m to technology start-up Zest Labs for allegedly stealing trade secrets, following a retrial in an Arkansas federal court. The jury's decision concluded that Walmart is liable for misappropriating trade secrets related to food preservation technology - an accusation that had been levelled by Zest. The technology startup was awarded $72.7m in compensatory damages and $150m in punitive damages. The verdict was based on findings that Walmart improperly used Zest Labs' trade secrets after the latter confidentially disclosed its proprietary Zest Fresh food preservation tech for reducing food waste under an agreement that included non-disclosure terms. Zest Labs initiated legal action against Walmart in 2018, accusing the retailer of appropriating the process, which monitors the freshness of produce from farms to stores. Zest Fresh process was expected to cut the amount of perishable food discarded by between 30% and 33%, Zest Labs manager Gary Metzger stated. Evidence presented during the trial suggested that Walmart then shifted from being a customer of Zest Labs and became a competitor. It allegedly developed a similar technology using the trade secrets obtained from Zest and filed a patent for it without disclosure. Gary Metzger stated: "Zest Labs developed groundbreaking technology aimed at addressing a significant humanitarian issue: food waste. But Walmart's misuse of Zest's trade secret has hindered our ability to achieve the necessary scale to make a substantial impact and help feed the world. 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. It marks a significant step toward ensuring justice and fair play in the business world." Walmart maintains that its Eden produce-tracking technology was independently developed. The retailing giant vows to appeal the ruling and states that Zest's "unethical behaviour has compromised the integrity of this case from the start". "Walmart faces $222m verdict for Zest Labs' trade secrets theft" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
14-05-2025
- Business
- Reuters
Walmart hit with $222 million US verdict in food preservation trade secret case
May 14 (Reuters) - A jury in Arkansas federal court found that Walmart (WMT.N), opens new tab owes technology startup Zest Labs more than $222 million following a retrial on allegations that Walmart stole its trade secrets for reducing food waste, Zest said in a press release on Wednesday. Zest said the jury on Tuesday awarded the company $72.7 million in compensatory damages and $150 million in punitive damages, finding that Walmart had misused its trade secrets after Zest shared its technology for improving food preservation with the retail giant. Zest won $115 million from Walmart in a separate trial in 2021. An Arkansas federal judge ordered a new trial in 2023 after finding that Zest had withheld relevant evidence before the first trial. Walmart said in a statement on Wednesday that it would appeal the new verdict and that Zest's "unethical behavior has compromised the integrity of this case from the start." Zest Labs manager Gary Metzger said in a statement that the verdict was a "small but crucial triumph for small businesses that often face exploitation by larger corporations." Zest Labs sued Walmart in 2018 for allegedly stealing its Zest Fresh technology, which tracks produce freshness from farms to stores. Zest said it worked with Walmart and shared proprietary information with the retail giant until 2017. Walmart denied the allegations and argued that it developed its "Eden" produce-tracking technology independently. The case is Zest Labs Inc v. Walmart Inc, U.S. District Court for the Eastern District of Arkansas, No. 4:18-cv-00500. For Zest: Patrick Ryan, Adam Mitzner, Sean McTigue, and Andrew Ryan of Bartko Pavia For Walmart: John Keville and Robert Green of Sheppard Mullin Richter & Hampton Read more: Lawsuit claims Walmart stole technology to keep produce fresh Walmart hit with $115 million verdict over food-waste trade secrets
