Walmart Reaches Settlement in Food Waste Tech Dispute With Zest Labs

Walmart has resolved a long-running legal battle involving food waste reduction technology through a confidential agreement with Zest Labs.

Years-Long Legal Battle Comes to an End

The Walmart food waste settlement ends a dispute that began in 2018 when Zest Labs sued the retail giant.
Zest accused Walmart of stealing cold-chain management technology designed to extend produce shelf life and cut food waste.

The tech company claimed it shared the innovation with Walmart under a confidentiality agreement in 2014.
Later, Walmart launched a platform called Eden, which Zest argued mirrored its original solution too closely.

This legal conflict intensified when a federal jury awarded Zest $115 million in 2021.
However, Walmart secured a retrial after the court learned that Zest had withheld evidence during the first trial.

Final Verdict Led to Confidential Settlement

In May, Walmart faced another setback when a federal jury ordered the retailer to pay $222.7 million to Zest Labs.
The verdict included $72.7 million for trade secret misuse and $150 million in exemplary damages.

Just months later, both parties informed the U.S. District Court for the Eastern District of Arkansas that they had reached a deal.
Judge James M. Moody confirmed the development in a Monday court filing.

Walmart then issued a brief statement saying the companies agreed to a confidential resolution that addressed all issues.
This outcome permanently ends the possibility of an appeal by Walmart following the costly verdict.

Zest Says Walmart Blocked Its Tech Impact

Zest Labs criticized Walmart’s actions, claiming they hindered its ability to scale technology that reduces food waste.
The startup said its cold-chain solution could have cut spoilage of perishable goods by as much as 50%.

Zest’s manager, Gary Metzger, emphasized in May that misuse of their innovation limited their chance to help feed the world.
Though the lawsuit is now over, Zest remains vocal about the broader impact of Walmart’s alleged actions.

Despite that, the Zest Labs food waste settlement now closes this chapter and prevents further litigation between the two companies.

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