On Wednesday, Walmart Inc shares fell in the after-hours session as a federal appeals court ruled that it must face a lawsuit over deceptive pricing.
It increased by 0.25% to $68.24 per stock on July 03 but declined by -0.07% to $68.19 apiece in the after-market period.
The lawsuit claims that the retail giant tends to charge higher prices at the register than the prices posted on store shelves. The federal appeals court mentioned that the store’s pricing method costs shoppers hundreds of millions yearly.
According to a reversal from a lower court judge, consumers could try to prove that Walmart’s conduct was fraudulent. The bait-and-switch scheme violates many states’ consumer protection laws.
Based on the consumers’ lawyers, price discrepancies were found in Florida, Illinois, Indiana, Maryland, and others.
They added that most deceptive prices were small. For instance, one Walmart in New Jersey charged $3.64 for Crisco Canola oil against the $3.12 shelf price. Additionally, another store charged $2.48 for Hershey’s Chocolate Syrup, with a $2.33 shelf price.
Moreover, the plaintiff’s lawyer, Stanley Bernstein, said they were pleased to vindicate Walmart customers’ rights.
Also, Circuit Judge David Hamilton stated that customers cannot be expected to monitor their items at checkout closely.
Health Centers from Walmart to be Sold
Based on reports, Walmart has been exploring a possible sale of its health centers with potential buyers.
In late April, the store announced closing all 51 healthcare clinics. The issue was caused by a challenging reimbursement environment and accumulating operating costs, which were causing a lack of profitability.
During the announcement, the company said it would shut down Walmart’s Health Virtual Care Unit operations. The action was driven by a decline in virtual care visits from the inflated visits during the COVID-19 pandemic.
In addition, Walmart reported the month before that it plans to open 22 new locations in 2024.
