In a major development in a long-running legal battle, an Arkansas federal jury has awarded Zest Labs Inc. nearly $223 million in damages, concluding that Walmart Inc. misappropriated the startup’s proprietary shelf-freshness technology. The ruling marks a significant moment in the ongoing Walmart $223M verdict trade secrets legal dispute.
According to the verdict delivered Tuesday, the jury determined that Walmart’s actions were willful and malicious, affirming Zest Labs’ claim of trade secret misappropriation. The award includes $72.7 million in compensatory damages and $150 million in exemplary damages.
“This is a resounding victory for innovation and fair competition,” said Patrick M. Ryan, lead trial attorney for Zest Labs. “The jury carefully considered the evidence and found that Walmart unlawfully used Zest’s revolutionary technology, publishing a patent that destroyed the trade secret. The size of the award reflects the seriousness of Walmart’s misconduct and sends a strong message to large corporations considering unethical behavior against smaller innovators.”
Walmart has publicly disagreed with the outcome. In a statement, the company said:
