Summary
Walmart Inc. (WMT) filed an 8-K on December 15, 2014, to disclose a significant legal development. The Pennsylvania Supreme Court largely upheld a 2007 judgment against the company in a class-action lawsuit, Braun/Hummel v. Wal-Mart Stores, Inc. This lawsuit, which dates back to 2002, alleged that Walmart failed to pay employees for all hours worked and prevented them from taking proper meal and rest breaks. The ruling affirms a judgment originally entered in 2007 for approximately $188 million, which included back pay, penalties, and fees. While Walmart appealed the decision through various levels, the Pennsylvania Supreme Court's latest ruling affirms a prior appellate court decision. The company is now considering further legal actions, including a potential appeal to the U.S. Supreme Court.
Key Highlights
- 1Pennsylvania Supreme Court largely upholds a 2007 judgment against Walmart in the Braun/Hummel class-action lawsuit.
- 2The original judgment in 2007 was for approximately $188 million, covering back pay, statutory penalties, attorneys' fees, and prejudgment interest.
- 3The lawsuit alleges Walmart failed to pay class members for all hours worked and prevented meal/rest breaks.
- 4Walmart is considering further legal action, including a potential appeal to the U.S. Supreme Court.
- 5The company estimates the charges related to this ruling will impact diluted EPS by approximately $0.06 in fiscal 2015's fourth quarter.
- 6This estimated EPS impact of $0.06 was not included in prior fiscal 2015 guidance.