Wal-Mart case a certified class action
Sex discrimination case against No. 1 retailer will cover 1.6M current and former female workers.
June 22, 2004: 10:18 AM EDT
CHICAGO (Reuters) - Shares of Wal-Mart fell Tuesday after a federal judge certified a class action suit against the company, which alleges that the world's biggest retailer discriminated against women.
Wal-Mart (WMT: down $0.85 to $54.08, Research, Estimates) shares dropped about 1.4 percent in early trading on the New York Stock Exchange.
Attorneys for the plaintiffs said it was the largest civil rights class action case in U.S. history.
U.S. District Court Judge Martin Jenkins certified the class of some 1.6 million women who worked for Wal-Mart's U.S. stores at any time since Dec. 26, 1998, attorneys for the six lead plaintiffs said.
The lawsuit, filed in 2001, accuses the largest U.S. private-sector employer of discriminating against women employees in pay, promotions and training, and retaliating against those who complained.
A Wal-Mart spokeswoman was not immediately able to comment on the decision, which was released Tuesday.
Wal-Mart has previously denied a pattern of discrimination and argues that the number of men in management positions reflects the higher number of applications it receives from men.
"Up until now, Wal-Mart has never faced a trial like this," Brad Seligman, lead attorney for the six women plaintiffs, said in a statement. "Lawsuits by individual women had no more effect than a pinprick. Now, however, the playing field has been leveled."
Legal experts have said that settling the case could cost Wal-Mart hundreds of millions of dollars or even into the billions. Most large class-action lawsuits in the United States are settled before they go to trial.