Walmart ordered to pay $115 million in damages for stealing trade secrets on tracking and routing

An Arkansas jury found Walmart liable for $115 million in damages for stealing the trade secrets for tracking and routing technology for perishable goods of Zest Labs Inc. and its parent, Ecoark.

The technology helps move perishable food from its point of origin to grocery shelves as fast as possible.

It utilizes wireless sensors to collect product data from individual pallets or cases of meat, produce, or other perishable items. It monitors for temperature control and other handling parameters, analyzes delivery schedules, predicts remaining shelf life upon delivery, and suggests routing patterns to maximize shelf life.

According to Zest Labs CEO Peter Mehring, they were “surprised and concerned” in March 2018 to find how Walmart's Eden program to track food from farm to table resembled their technology.

The jury labeled Walmart's stealing of Zest’s trade secrets and failure to comply with a written contract as willful and malicious.

The verdict consists of $65 million in compensatory damages and $50 million in punitive damages.

Ecoark CEO Randy May said they are happy to have their day in court.

Walmart vowed to appeal, calling the verdict “excessive.”