San Francisco
has upheld class-action status for a sexual discrimination lawsuit against
Wal-Mart Stores.
The case, brought by a group of seven women accusing the
world’s largest retailer of bias in pay and promotion, is set to become the
largest class-action employment discrimination suit in U.S.
history. Some 1.6 million women have worked in Wal-Mart stores since 1998 and
could potentially join the suit.
Just hours after the ruling was handed down Tuesday, February
6, the Bentonville, Arkansas-based retailer announced plans to fight the 9th
Circuit Court’s decision, which upholds a 2004 decision to let the lawsuit go to
trial. Wal-Mart could pay billions of dollars in damages if it loses the
case.
“This is just another step in what will be a very long
process, and we are still in the early stages of the case,” said Theodore J.
Boutrous Jr., a partner at Gibson, Dunn & Crutcher and lead counsel for
Wal-Mart’s appeal. “We are optimistic about our chances for obtaining relief
from this ruling as the case progresses.”
Wal-Mart’s attempts to fight the ruling, however, could be an
uphill battle, says Elizabeth Lawrence, a partner at San Francisco-based law
firm Davis, Cowell & Bowe and an attorney for the plaintiffs.
“The court upheld the original class-action status that was
granted in 2004,” she says. “This bodes negatively for any further appeals
strategy Wal-Mart may launch.”
According to Lawrence, Wal-Mart does not want the suit to go
to trial under class-action status. Instead, the company would prefer each woman
who believes that she was discriminated against to file suit as an
individual.
“That would clog the legal system because there are hundreds
of women who were victims of bias practices,” Lawrence says. “Besides, many of these women
barely make minimum wage and could never afford to launch a suit against a big
company.”
Wal-Mart says it is not guilty of the charges, and points to
recognition it has received for promoting diversity within the workplace. The
company was named of the 50 Best Companies for Latinas to Work for in the
United
States by Latina Style magazine and also ranked in
the Top 40 U.S. Companies for Diversity by Black Enterprise magazine.
Despite the accolades, the plaintiffs assert that
discrimination took place and say Wal-Mart’s centralized management structure
could be one of the contributing factors.
“The company is completely run out of Bentonville,”
Lawrence
says.
Wal-Mart’s intentions to appeal the ruling didn’t come as a
surprise to Lawrence.
“We are disappointed that Wal-Mart has launched legal
warfare,” she says. “The time has come for the company to admit there is a
problem and try to fix it.”
—Gina Ruiz
For more coverage of Wal-Mart’s people problems, click on
these links:
Wal-Mart Answers Its Critics
People Problems on Every Aisle