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Supreme Court denies class action movement against Walmart

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According to a recent Portfolio article, a recent Supreme Court ruling might have supported Walmart, however, it was a success for all businesses.

The Supreme Court recently denied class action status to a sex discrimination lawsuit that was filed against Walmart. Six plaintiffs had submitted lawsuits against the retail giant, who claimed they were paid less and were passed over for promotions because of their gender. The women had motioned to make the lawsuit bigger, with as many of 1.5 million other parties joining their side.

If the court had ruled in favor of the plaintiffs, Walmart could have lost billions of dollars, and several other businesses could have faced lawsuits for wage discrimination, many of which may have been unwarranted.

Via a 5-4 vote, the court ruled that the large number of potential plaintiffs did not have enough in common with their claims to be lumped together in a class-action movement. Furthermore, the Supreme Court unanimously voted that the case could not be brought back if it receives injunctive relief.

"Individual claims for monetary relief can no longer be hidden inside a complaint for injunctive relief," attorney Scott Burnett Smith told the news source.

The case highlights the need for companies to be careful with potential layoffs and promotions, as any movements that can be interpreted as discriminatory could lead to professional liability lawsuits.  

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