Supreme Court to review of Wal-Mart discrimination case

The U.S. Supreme Court on Monday (Dec. 6) approved a limited review of what could be the largest class-action lawsuit — Dukes v. Wal-Mart Stores — in the country.

On April 26, the Ninth Circuit of Appeals (California) voted 6-5 to allow the Dukes case to move forward that originally included more than 1.5 million current and former female employees. However, the decision by the Ninth Circuit potentially reduced the class size by up to two-thirds, and it also set aside the ruling on punitive damages.

The gender discrimination claim alleges Wal-Mart failed to promote and pay women as equally as men. Some estimates have the per claim payout ranging between $500,000 and $1 million, meaning a possible monetary claim could reach the hundreds of billions.

The decision Monday to review the class certification is seen as a positive for Wal-Mart, and could set a precedent in future and ongoing large class-action lawsuits.

A statement from Wal-Mart Stores Inc. noted: “We are pleased that the Supreme Court has granted review in this important case. The current confusion in class action law is harmful for everyone – employers, employees, businesses of all types and sizes, and the civil justice system. These are exceedingly important issues that reach far beyond this particular case. We look forward to the Court’s consideration of the appeal.”

The lead attorney representing plaintiffs said he is hopeful the limited review will produce validation of the Ninth Circuit ruling.

“We welcome the Supreme Court’s limited review of the class certification decision in this case.  As that decision was based on a vast body of evidence, we are confident that the decision to certify the class was sound," Plaintiffs’ lead co-counsel Joseph M. Sellers, partner, Cohen Milstein Sellers & Toll, PLLC, Washington, D.C., said in a statement. "We believe the Court will reach the same decision after reviewing the record before the U.S. District Court for the Northern District of California, where class certification was granted in June 2004."

The Sellers statement also noted that the Supreme Court “rejected review of a host of other issues raised by Wal-Mart.”