From Bloomberg News:
“Wal-Mart Stores Inc., the worldâ€™s largest retailer, said first-quarter profit increased 10 percent as growth in Mexico, Canada and China helped make up for sales declines at U.S. stores. Net income rose to $3.32 billion, or 88 cents a share, from $3.02 billion, or 77 cents, a year earlier, Wal-Mart said in a statement today.”
While Wal-Mart sees a 10% increase in profit due to international growth, in the United States, they are being ordered to pay up to $86 million to roughly 232,000 former and current employees in a class-action lawsuit settlement dating from 2006. Wal-Mart was accused of failing to pay vacation and sick pay, as well as overtime, to former workers in California.
The federal court filing requires a minimum payout of $43 million but could reach up to $86 million.
According to the filing documents, the payout “far exceeds other recent settlements.”
Other recent settlements? In 2008, Wal-Mart agreed to pay as much as $640 million to settle 63 federal and state class-action lawsuits, all regarding the deprivation of employee wages.
Wal-Mart will recoup the $86 million with less than two days of profit.