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High court to hear Wal-Mart appeal on sex bias lawsuit

Shoppers leave a Wal-Mart store in Danvers, Mass. on Feb. 17, 2009. (AP / Lisa Poole)
Shoppers leave a Wal-Mart store in Danvers, Mass. on Feb. 17, 2009. (AP / Lisa Poole)

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Date: Monday Dec. 6, 2010 10:39 AM ET

WASHINGTON — The U.S. Supreme Court will consider throwing out a massive lawsuit that claims Wal-Mart pays women less than men and promotes women less frequently.

The justices stepped into a case Monday that could involve 500,000 to 1.5 million women who work or once worked at the world's largest private employer. Wal-Mart Stores Inc. calls it the largest employment class action in history.

Wal-Mart is appealing a ruling by the 9th U.S. Circuit Court of Appeals in San Francisco that the class-action lawsuit could go to trial, with potentially billions of dollars in legal damages at stake.

Wal-Mart, based in Bentonville, Ark., and the many business interests backing its appeal, say allowing the large number of claims to go forward would set off an avalanche of similar class-action lawsuits in California and the other Western states overseen by the 9th Circuit.

But the lawyers representing the women who are suing Wal-Mart say there have been only eight such suits nationwide -- and none within the 9th Circuit -- since the first appeals court ruling in favour of the women nearly four years ago.

"This threatened landslide of class-action litigation has not materialized," the lawyers said in legal papers filed with the Supreme Court.

Wal-Mart employs 1.4 million people in the United States and 2.1 million workers in 8,000 stores worldwide. The company said the women should not be allowed to join together in the lawsuit because each outlet operates as an independent business. Since it doesn't have a companywide policy of discrimination, Wal-Mart argued that women alleging gender bias should file individual lawsuits against individual stores.

The plaintiffs contend that the company was aware that it lagged behind other employers in terms of opportunities for women and that Wal-Mart imposes uniform rules and tight controls over its stores.

The lawsuit was first filed by six women in federal court in 2001. The 9th Circuit has three times ruled that the case could proceed as a class action.

In its latest decision, in April, the appeals court voted 6-5 in favour of the plaintiffs. Judge Michael Daly Hawkins said that the number of women involved is large, but "mere size does not render a case unmanageable."

Judge Sandra Ikuta's blistering dissent said the women employees failed to present proof of widespread discrimination. Without such evidence, Ikuta said, "there is nothing to bind these purported 1.5 million claims together in a single action."

The case will be argued in the spring.

The case is Wal-Mart Stores v. Dukes, 10-277.

Comments are now closed for this story

Donny in Edmonton
said
0 0

This has nothing to do with gender. Moreso it's employee perfromance, which is quite a rarity whenever I've gone into a Wal-Mart. That's why I avoid shopping there whenever possible.


zoe
said
0 0

Walmart is a great place to shop......too bad our local stores charge twice the price so what do expect people to do....go where they can afford. As for people commenting on job conditons in the Walmarts...quit...no one is forcing you to stay...cant be all bad...1.4 million people work for Wally. Shake your heads.


reece
said
0 0

Any lawsuit against Walmart is a good thing in my books. I HATE them! All of you who shop there are commiting genocide against domestic jobs and supporting slave driving communists in China. Tommorow I am buying living room furniture that is locally made with lamps made in Italy. You all are a bunch of back stabbers and deserve to lose your jobs.


B. Kelley, Not Smiling In Ontario
said
0 0

Those everyday low prices have a price. Stories of WalMart employees being shabbily treated are legion, especially in the U.S. where labour laws are much less stringent. Their suppliers are treated even worse with many being forced by WalMart to move their production to China and, in the process, destroy American and Canadian manufacturing jobs. Many small towns in the US have become ghost towns after Wally World moved in and killed all their small business competition so anyone who didn`t work for them lost their jobs and couldn`t afford to shop anymore. Now there`s just a bunch of deserted buildings surrounding a deserted WalMart store. Behind that yellow smiley face lies a corporation that is anything but friendly to our economy, their employees and the retail world in general.


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