Jury Awards Company More than $200 Million Verdict in Trade Secret Misappropriation Case Against Walmart
According to a report from Law 360, a jury in Arkansas has awarded a company a nearly $225 million verdict in a trade secret misappropriation case against the state’s largest company (Walmart). The jury determined that the multinational retailer improperly misappropriated the trade secret of Zest Labs Inc. In this article, our Florida trade secret protection lawyer provides an overview of the dispute and the decision from the jury.
Case Review: Walmart Trade Secret Misappropriation
The Background
Zest Labs Inc. is a California-based agri-tech startup. The company developed a technology called “Zest Fresh.” It is designed to help reduce food waste by predicting the shelf life of produce through data analytics and machine learning. In 2017, Zest Labs Inc. entered into a non-disclosure agreement (NDA) with Walmart to pilot this technology. However, the California-based company alleges that Walmart violated that agreement by misusing confidential information about its proprietary information to develop a similar system called “Eden.”
The Decision and Verdict
Walmart was sued for trade secret misappropriation in a federal court in Arkansas. In the civil dispute, Walmart was found liable for trade secret violations. Notably, the jury found that Walmart’s actions were willful and malicious. Zest Labs Inc. was awarded:
- $72.7 million in compensatory damages; and
- $150 million in punitive damages.
The trade secret dispute has been long-standing. The Arkansas jury verdict follows a previous trial in 2021, in which the plaintiff was awarded $115 million in damages. However, that jury verdict was later vacated due to the fact that it withheld evidence. The latest verdict comes from the retrial.
What Comes Next: An Appeal is Likely
While the jury verdict marks a major victory for Zest Labs Inc., the case is not necessarily over yet. Walmart has announced plans to appeal the verdict. The multinational corporation argues that the plaintiff’s conduct compromised the integrity of the case.
Willful Trade Secret Misappropriation Can Lead to Additional Damages
Willful trade secret misappropriation is a serious civil legal violation. It can result in significant additional damages under both federal law and, when applicable, state law. When a court or jury finds that a company intentionally and maliciously misused another party’s confidential information, it can award punitive damages on top of any compensatory damages.
Punitive damages in trade secret misappropriation cases are meant to punish egregious behavior and deter future misconduct. Under the Defend Trade Secrets Act (DTSA), a plaintiff that proves willfulness on the part of the defendant can dramatically increase its recovery.
Contact Our Florida Trade Secret Protection Lawyer Today
At Perkins Law — Brand Protection, our Florida trade secret protection lawyer is standing by, ready to protect your rights. If you have any specific questions or concerns about trade secret misappropriation, please do not hesitate to contact us today. Our firm represents both plaintiffs and defendants in these cases. We handle trade secret issues throughout all of South Florida, including in Miami-Dade County, Broward County, and Palm Beach County.
Source:
law360.com/articles/2337554/walmart-hit-with-223m-verdict-in-trade-secrets-fight
