August 08, 2005

WM Asks for the Class to be Disbanded

As expected, Wal-Mart will today ask that the sex discrimination class be broken apart:

The report said that if the order is upheld, Wal-Mart could face a lengthy court battle or, more likely, would pursue a settlement that by some estimates could cost the retailer billions of dollars.

On the other hand, the Journal cited legal experts who said if class-action certification is overturned, it would likely become too costly and cumbersome for the plaintiffs to pursue their cases individually.

The three-judge panel in the U.S. Ninth Circuit Court of Appeals in San Francisco could take months to issue a ruling, the paper said.

As I have written before, the six named plaintiffs look like they have good cases, but the statistical duel between Wal-Mart and its opponents is not easily winnable by either side.

If Wal-Mart wins, will its stock price soar?

Posted by Kevin on August, 8 2005 at 09:33 AM

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Steve Lee wrote:

In this filing Wal-Mart claims that store managers have such a high degree of autonomy that they liken it to thousands of individual businesses being operated on their merchandise distribution system. The disparity in wages and promotions at the store level is caused by differences in individual approaches to management of the stores employees.

-- August 8, 2005 02:16 PM