Wal-Mart Bias Case Will Go To TrialAppeals Court Rules Retail Giant Must Face Lawsuit Alleging Discrimination
Against Female WorkersSAN FRANCISCO, Feb. 6, 2007
(AP) A federal appeals court ruled Tuesday that Wal-Mart Stores Inc., the world's
largest private employer, must face a class-action lawsuit alleging female employees
were discriminated against in pay and promotions.
The ruling by the 9th U.S. Circuit Court of Appeals upholds a 2004 federal judge's
decision to let the nation's largest class-action employment discrimination lawsuit
go to trial. The suit claims that as many as 1.5 million current and former female
employees earned less than men and were bypassed for promotions.
The lawsuit exposes the Bentonville, Ark.-based retailing powerhouse to the possibility
of billions of dollars in damages.
Wal-Mart claimed that the conventional rules of class actions should not apply in the
case because its 3,400 stores, including Sam's Club warehouse outlets, operate like
independent businesses, and that the company did not have a policy of discriminating
against women.
But the court, in a 2-1 decision, disagreed.
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