Supreme Court reverses Walmart class action | Arkansas Blog

Monday, June 20, 2011

Supreme Court reverses Walmart class action

Posted By on Mon, Jun 20, 2011 at 9:21 AM

Big ruling today by the U.S. Supreme Court in the appeal by Walmart of certification of a class action in a sex discrimination lawsuit covering 1.5 million employees.

The court reversed the broad class action determination. The opinion is splintered in some respects between the conservative and liberal wings of the court, but all justices agreed on the core issue. Plaintiffs may pursue claims individually, but they won't have nearly the clout the class had in pressing the company.

Here's the opinion. Antonin Scalia wrote it. The opinion said, generally, that plaintiffs had presented INsufficient proof that the entire company operated under a discriminatory policy, whatever overall statistics might show (hourly jobs are 70 percent female; management jobs only 33 percent), and that even where individual stores or groups of stores might have suggestive statistics, managers might argue local conditions explained fewer women in higher paying jobs.

Four justices — Breyer, Ginsburg, Sotomayor and Kagan — dissented. Though they'd have had further lower court hearings before certifying a class action, they said plaintiffs had presented arguable points on discriminatory practices at Walmart, evidence that suggested that "gender bias suffused Walmart's company culture." The court majority said, essentially, however, that the group could never prove a "commonality" argument.

Said the minority:

The plaintiffs’ allegations state claims of gender discrimination in the form of biased decisionmaking in both pay and promotions. The evidence reviewed by the District Court adequately demonstrated that resolving those claims would necessitate examination of particular policies and practices alleged to affect, adversely and globally, women employed at Wal-Mart’s stores.

Won't happen now in just that way. But plaintiffs haven't quit fighting. Their statement:

The plaintiffs are disappointed by the sharply divided decision issued by the U.S. Supreme Court today reversing class certification in Dukes v. Wal-Mart. The Court's ruling erects substantially higher barriers for working women and men to vindicate rights to be free from employment discrimination. The ruling does not, however, address whether Wal-Mart committed sex discrimination against its women employees. Rather, it addresses how women suing Wal-Mart must press ahead with their claims. Nothing the Supreme Court has ruled affects the power of the evidence of sex discrimination at Wal-Mart. That evidence is as strong today as it was when it was collected.

The ruling still allows women whose claims go back to Dec. 26, 1998 to file charges with the U.S. Equal Employment Opportunity Commission or bring their claims in court. Class counsel has planned for various outcomes before the Supreme Court— including this one—and have put in place plans to assist as many women Wal-Mart class members as possible with their claims.

Class counsel has been contacted by thousands of current and former Wal-Mart women over the years and will be communicating with them about their options directly and via the official website, where women can go for more information. It is very important that current and former women at Wal-Mart and Wal-Mart itself understand that today’s ruling does not end this case or the struggle for equal pay and fair promotions at Wal-Mart. The fight for justice will continue.

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