Stocktwits - A jury in an Arkansas federal court has asked Walmart (NYSE:WMT) to compensate Zest Labs $222 million for stealing the startup’s trade secrets and unfairly copying its proprietary technology for food storage, according to a statement from Zest Labs.
Zest said the jury awarded the company $72.7 million in compensatory damages and $150 million in punitive damages.
The development comes just ahead of Walmart’s first-quarter (Q1) earnings on Thursday, where the company is expected to report a 2.8% rise in sales and updates on its plans to counter the impact of tariffs.
Walmart was among the top 10 trending tickers on Stocktwits at the time of writing.
The latest ruling is part of a retrial. Zest first sued Walmart in 2018 and won a $115 million award in 2021.
An Arkansas federal judge ordered a new trial in 2023 after finding that Zest had withheld relevant evidence before the first trial.
In a statement to Reuters, Walmart said it would appeal the new verdict and that Zest’s "unethical behavior has compromised the integrity of this case from the start."
Silicon Valley-based Zest company offers customers technologies to prolong the shelf life of food produce and reduce spoilage.
Zest and Walmart worked together for years before the partnership ended in 2017. Walmart later introduced its "Eden" technology, which Zest had alleged "looks, sounds, and functions" like its own Zest Fresh technology.
On Stocktwits, retail sentiment rose to ’extremely bullish’ from ’bearish’ the day prior.
Walmart has received a string of positive commentary ahead of its earnings, with analysts saying Walmart’s scale, product mix, and pricing power make it resilient to tariff pressures.
Walmart stock is up 7.2% this year.