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America September 24, 2026 5 mins read

Walmart $16M Expired Formula Sales Settlement Closes California Case

America ı By Tyler Brooks

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Walmart $16M Expired Formula Sales settlement

Expiration dates exist for a reason — they're the quiet line between safe and questionable, especially when the product in question feeds an infant. Walmart has agreed to pay $16 million to resolve claims that it sold expired infant formula and over-the-counter drug products to consumers well past their expiration dates, the Sonoma County District Attorney's Office announced Wednesday.

The Terms of the Agreement

Under the settlement, filed in Alameda County Superior Court, the retail giant has agreed to comply with an injunction barring it from selling or advertising infant formula past the "use by" date on its label, along with over-the-counter drug products past their own expiration dates, across every one of its California locations. The settlement covers a wide range of everyday OTC items, including cough syrup, sunscreen and cosmetics, according to the announcement.

A Coalition of Counties Joins the Fight

This wasn't a single county's isolated grievance — it was a coordinated legal effort. Several California counties filed the consumer protection suit against Walmart, including district attorneys from Alameda, Sacramento, San Bernardino, Solano, San Joaquin and Yolo counties, all acting on behalf of the people of California, according to Wednesday's announcement.

What the Compliance Program Actually Covers

According to the final judgment signed earlier this month, Walmart's new compliance program applies broadly to date-sensitive OTC drugs and infant consumer products — spanning beauty and health items, cosmetic merchandise, medications, and all date-regulated baby formula required under the Food Drug and Cosmetic Act to carry a "use by" label.

A Six-Year Commitment to Checking the Shelves

For the next six years, Walmart has agreed to dedicate four associate hours per week at each Walmart and Neighborhood Market location it operates in California specifically to vetting and checking for expired or soon-to-expire date-sensitive products, removing flagged items from store inventories before they reach a customer's cart.

Where the Penalty Money Is Headed

The Sonoma County District Attorney's Office is set to receive $2.2 million in civil penalties, along with an additional $60,000 for cost recovery, according to Wednesday's announcement — a meaningful share of the overall settlement directed specifically toward the office that helped bring the case.

Cooperation Noted Amid the Penalty

Despite the substantial settlement figure, county officials were careful to credit Walmart's cooperation throughout the investigation, along with proactive steps the company took toward legal compliance even before the settlement was finalized. Notably, investigators found no evidence that any expired or outdated products sold at Walmart had physically harmed any consumers — a detail that separates this case from scenarios involving actual injury or illness.

The District Attorney's Statement

"Under California law and the terms of the judgment, Walmart is prohibited from selling infant formula after the 'use by' date and expired OTC drugs in California," Sonoma County District Attorney Carla Rodriguez said in a Wednesday press statement. "My office is proud to partner with other district attorneys around the state to bring this important action that protects the public and consumers." Rodriguez's office also urged all retailers carrying similar OTC drug products or infant formula to review their own inventory practices to ensure full compliance with both state and federal law.

The Timeline Behind the Case

State prosecutors first filed suit against Walmart on July 14, 2026, with the final judgment and injunction officially executed on Sept. 18 — a resolution reached roughly two months after the case was initially brought.

Walmart's Response

"We are glad to have resolved this matter," a Walmart spokesperson told Law360 in a Thursday statement. "The health and safety of our customers is a top priority. We have processes and procedures in place to comply with laws and regulations, and we continuously work to improve them."

A Pattern of Legal Settlements Stretching Back Years

This settlement doesn't stand alone — it's the latest entry in a string of legal resolutions Walmart has faced in recent years. Wednesday's announcement arrives just seven months after the Federal Trade Commission and 11 states reached a $100 million settlement with Walmart in the Northern District of California, resolving allegations the company misled drivers in its "Spark" delivery program about their compensation, while also misleading customers about how much of their tips actually reached those drivers.

Older Cases Add to the Pattern

Two years earlier, in October 2024, Walmart agreed to pay $7.5 million to settle a separate lawsuit brought by the state of California and several county district attorneys, alleging the company improperly disposed of hazardous and medical waste at municipal landfills — a settlement reached nearly three years after the original civil suit accused Walmart of dumping tens of thousands of pounds of hazardous waste annually.

Even earlier, in 2023, Walmart paid $500,000 to resolve claims brought by the California Attorney General, along with district attorneys from Ventura, Merced and Yolo counties, alleging that the company and third-party sellers violated state law by selling illegal brass knuckles through Walmart's website.

The Legal Teams Involved

The plaintiffs are represented collectively by the county district attorneys of Alameda, Sonoma, Sacramento, Solano, San Joaquin, San Bernardino and Yolo counties.

Walmart is represented by McGregor Scott of King & Spalding LLP.

Taken together, this settlement adds one more chapter to a recurring pattern for the retail giant — one where California regulators keep finding gaps between company policy and store-level practice, and where multimillion-dollar settlements have become almost as routine as the expiration dates now under stricter enforcement.

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Tyler Brooks

Tyler is covering the intersection of law, finance, and public policy. With a keen eye for regulatory shifts and market trends, he brings clarity to complex issues shaping the global economy, and drama whenever possible.

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