Walmart, the behemoth of a grocery chain, has been in the news a lot over the last few years. Most of the coverage has been positive, focusing on the company’s surging stock prices and soaring revenue in 2023. However, the company has also been at the center of several controversies. The most recent involves a class action lawsuit over weighted groceries. While Walmart stores deny any wrongdoing, the company agreed to a $45 million settlement.
Consumers impacted by the incident during the defined settlement class period were eligible to submit a claim and receive a cash payment. Here’s everything you need to know about the Walmart class action lawsuit settlement and similar class action lawsuits that you might be able to join for a piece of a settlement.
History of the Walmart Class Action Lawsuit & Settlement
The Walmart class action lawsuit began when consumers noticed discrepancies in the prices of certain goods. Over time, it became clear that these incidents were part of a broader pattern that suggested systemic issues with how Walmart priced its products.
The primary allegations made by Walmart customers are that weighted goods such as meat, poultry, pork, and seafood were being sold at prices that did not match those advertised. This discrepancy between what Walmart advertised and the actual prices caused customers to overpay.
Additionally, customers expressed concerns that organic oranges, grapefruits, and other bagged citrus products weighed less than advertised. For instance, navel oranges sold during the settlement period may have included the mass of mesh or plastic bags in the listed weight, which could lead to overpaying.
That’s not all. There were also verified reports of citrus fruits being sold at prices higher than indicated while labeled as “clearance” items.
Timeline of the Walmart Class Action Lawsuit & Settlement
Customers filed the initial suit in October 2022. Over the next several years, attorneys gathered additional information about the case and encouraged more customers to come forward. Walmart didn’t change its store practices significantly until early 2024.
Ultimately, Walmart agreed to a $45 million settlement. This fund is allocated to compensate those who were overcharged, providing some financial restitution to consumers.
The settlement class period covers purchases made between October 19, 2018, and January 19, 2024. This period reflects the time frame during which the alleged overcharging and misleading practices occurred.
The final approval hearing took place on June 12, 2024. Individuals who submitted a claim form had to do so by June 5, 2024. Those who met the deadline and had an approved claim were eligible to receive up to $500 in claim money.
Why All the Outrage?
Walmart promises customers everyday low prices. While it mostly lives up to this claim, the company has also experienced huge profit gains in recent years, especially during the pandemic when many small stores were closed.
In 2023, Walmart reported $611.3 billion in revenue. The company’s CEO, Doug McMillon, has done quite well for himself as well. As of 2024, McMillon has a reported net worth of $300 million (or more).
During that time, the average American has faced significant inflation, rising grocery costs, and other financial hardships. Learning that a retailer focused on low prices overcharges for basic goods like meat and fruit can be frustrating. The overwhelming participation in the Walmart class action lawsuit settlement reiterates that point.
Unfortunately, this trend of companies price-gouging to take advantage of already soaring inflation is only getting worse and worse and food is far from the only target.
Details of the Walmart Class Action Lawsuit Settlement
The settlement requires Walmart to pay $45 million to affected customers. However, any unclaimed funds may be returned to the corporation. While the settlement period has closed, it’s unclear how much of the funds were claimed.
The settlement covers purchases made between October 19, 2018, and January 19, 2024, a period spanning just over five years. If you purchased weighted goods from Walmart during that span, you were eligible to file a claim within the settlement period.
Eligible products under the settlement included weighted goods (meat, poultry, pork, seafood) and bagged citrus sold in mesh or plastic bags. Each customer could receive a maximum payout of $500. This cap ensures a fair distribution of settlement funds among affected customers, reflecting the varying degrees of overcharges experienced.
Despite agreeing to a settlement, Walmart denies any wrongdoing. The company maintains that it did not intentionally mislead customers or overcharge them but agreed to the settlement to avoid prolonged litigation and provide relief to consumers. Some critics believe that the move was meant to pad the company’s profit margins.
Outcome for Walmart Class Action Lawsuit Plaintiffs
After customers submitted a claim form, their case was evaluated to determine how much they were eligible to receive. Each customer’s cash payment varied by the extent of their purchases and the overcharges they experienced. While some received modest sums, others were granted the maximum payout of $500.
Plaintiffs with an approved claim could opt to receive their payout via a paper check or direct deposit. This flexibility enabled affected customers to access their settlement funds easily.
However, obtaining an approval wasn’t easy. Customers had to submit proof of their purchases during the class period. This included receipts or other documentation showing the purchase of eligible items. If you don’t already, make sure you save your receipts for all kinds of items as they may come in handy later on.
The final approval hearing on June 12, 2024, marked the end of the legal proceedings and the beginning of the payout process. It also set a precedent for how similar cases might be handled in the future, emphasizing the importance of consumer rights.
Impact and Implications of the Lawsuit
Walmart’s brand promise of “everyday low prices” took a hit with this settlement. Consumers may become more vigilant about checking their receipts and scrutinizing prices, potentially impacting Walmart’s reputation and customer trust.
Consumer advocacy groups hailed the settlement as a victory for shoppers everywhere. It highlighted the power of collective action and the importance of holding large corporations accountable for their pricing practices.
However, it’s also important to point out that the $45 million settlement represents little more than a drop in the bucket for Walmart. The company continues to rake in billions in revenue.
The good news is that the settlement sends a strong message to the entire retail industry about the need for transparency and accuracy in pricing. Other retailers may take note and implement more rigorous checks to avoid similar suits.
Walmart Is Struggling Elsewhere Too
It’s virtually impossible for a company as big as Walmart to stay out of the news. Fortunately for the retail and ecommerce giant, most of the news coverage it receives is neutral or positive.
Some of the most interesting news coverage involving Walmart centers around its repeated run-ins with Amazon. A few years ago, Walmart began running a huge sales event to compete with Prime Day. That particular interaction with its largest competitor was above board, but Walmart has also been part of a major Amazon controversy.
Early in 2024, news broke that Amazon has been surveilling rival ecommerce platforms, including Walmart, for nearly ten years. The project was designed to gather sensitive data about their rivals’ business practices, logistics strategies, and pricing.
Other Open Class Action Lawsuits
While the Walmart class action lawsuit settlement is significant, the claims period has officially closed. However, it’s not the only class action lawsuit with the potential to impact consumers. Several major cases are still open, including the following:
Crocs Shrinking Shoes Lawsuit
Has it ever felt like your Crocs shrunk after a day out in the sun? That’s because they probably did. In November 2022, about a month after the Walmart suit started, consumers filed a class action claim against Crocs for shrinking shoes and false advertising.
The false advertising claim is perhaps the strongest allegation surrounding the Crocs controversy. Plaintiffs claim that Crocs commercials frequently show people wearing their shoes around water and outside in direct sunlight. The problem is that wet and hot environments can (and often do) cause Crocs to shrink.
The case is ongoing. Thus, it’s not too late to join if your Crocs have suffered from shrinkage. The court handling the case has yet to define the settlement class period, so any purchases could be eligible for the time being. If you think you might have grounds for a claim, contact Merchant Law Group LLP, the firm representing the plaintiffs.
Roblox Gambling Suit
Roblox, the popular online gaming platform, faced a class action lawsuit in 2023. Parents in the Northern District of California filed a claim alleging that the game acts as an “illegal gambling ring” and accused the platform of preying on children.
The suit revolved around Robux, the game’s virtual currency. Parents alleged that children could use Robux to participate in online gambling. The company’s official policy prohibits any experience that simulates gambling. However, numerous third-party sites accept bets using Robux.
In the complaint, plaintiffs claim that Roblox knowingly allowed this behavior and made millions in the process. The company charges a 30% fee to convert Robux back into dollars, allowing it to profit from any virtual gambling activities involving its digital currency. Even worse, the conversion rate offered is much worse than the price of Robux in the official Roblox store. The partners also accused Roblox of violating federal anti-racketeering laws.
US District Judge Vince Chhabria tossed out the RICO claims made against the company in March 2024. However, he also ruled that Roblox did violate California’s Unfair Competition Law.
In the most recent set of hearings, which took place on June 27, 2024, Chhabria criticized Roblox’s attorneys for claiming that the platform didn’t have a duty to prevent harm. The case is ongoing, and no settlement has been reached.
Sirius XM Overcharging Allegations
One of the most recent class action lawsuits involves Sirius XM Radio. The suit was filed on June 21, 2024. The basis of the suit is that Sirius XM failed to disclose its music royalty fee to subscribers in the terms and conditions of its subscription agreement.
Plaintiffs also claim that Sirius XM declines to send billing invoices but automatically renews subscriptions. The suit refers to the royalty fee as a “disguised double charge” for the Sirius music plan.
How Class Action Suits Impact Consumers
The $45 million Walmart class action lawsuit settlement is a significant win for consumers. It addresses overcharges on weighted goods and misleading pricing practices. In so doing, the suit underscores the importance of vigilance in corporate practices and consumer protection.
Class action lawsuits represent one of the best tools for consumers who need to fight back against corporate injustices. Settlements like the Walmart case demonstrate the critical role consumer protection plays in ensuring fairness in the marketplace and in holding corporations accountable.
As a consumer, it’s important to stay aware of the latest class action settlements. If a class action incident has impacted you and you are eligible to file a claim, make sure to do so within the specified filing period. Your vigilance and action can drive positive change in the market that benefits all consumers (and maybe get you a bit of cash in the process).