Ecoark Shares Drop 35% After Jury Rules Against Walmart
By Chris Wack
Ecoark Holdings Inc. shares were down 35% to $8.29 after the
company said that on Friday, a Little Rock, Ark., jury awarded
Ecoark and its wholly owned subsidiary Zest Labs Inc. a total of
$115 million in damages in a lawsuit against Walmart Inc.
The company said Walmart was found liable on three claims from a
lawsuit filed in August 2018.
The federal jury found that Walmart misappropriated Zest's trade
secrets, failed to comply with a written contract, and acted
willfully and maliciously in misappropriating Zest's trade
In addition to the $65 million in compensatory damages, the
award includes $50 million in punitive damages for Walmart's
willful and malicious conduct.
The lawsuit accused Walmart of using and disclosing trade
secrets of Zest relating to reducing and fighting the worldwide
problem of fresh food loss and waste.
Ecoark said it doesn't believe Walmart has any basis to appeal
the verdict, and doing so "will only confirm that the judgment was
proper." The company plans to file an appeal of some of the judge's
pretrial rulings to make sure that Walmart is held fully
accountable for its actions. The appeal will allow Ecoark and Zest
to seek additional liability and damages findings against Walmart
to ensure that innovative businesses are protected from
misappropriation of their technologies.
Ecoark and Zest also intend to file post-trial motions in the
coming weeks to add an award of their attorneys' fees as the
prevailing party in the litigation.
Write to Chris Wack at email@example.com
(END) Dow Jones Newswires
April 12, 2021 10:04 ET (14:04 GMT)
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