Walmart has agreed to a settlement with Zest Labs, the food waste technology company that first sued the retailer seven years ago over claims it stole trade secrets.
The deal brings to a close a complex legal battle that just months ago resulted in a federal jury ordering Walmart to pay Zest Labs more than $222 million. Walmart said at the time it would appeal that verdict, but this week’s settlement rules out that option.
Judge James M. Moody of the U.S. District Court for the Eastern District of Arkansas said in a Monday filing that he had been notified that the two sides reached a settlement. Walmart stated to Arkansas Business that it and Zest Labs “agreed to a confidential settlement that resolves all issues between them.”
Zest sued Walmart in 2018, claiming Walmart had stolen its cold-chain management technology that extends produce shelf life. The tech company said it showed the technology to Walmart executives in 2014 and entered into a confidential agreement a few months later. Walmart eventually released a solution called Eden that Zest said closely resembled its invention.
In 2021, a jury awarded Zest $115 million, but in 2023, Judge Moody granted a new trial at Walmart’s request after learning that Zest withheld relevant evidence. The plan to force a second showdown backfired for Walmart. In May, a federal jury ordered the retailer to pay Zest $222.7 million, which includes $72.7 million for trade secret misappropriation and $150 million for exemplary damages.
“Zest’s technology had the potential to reduce approximately 30-33% waste of perishable foods in half. But Walmart's misuse of Zest’s trade secret has hindered our ability to achieve the necessary scale to make a substantial impact and help feed the world,” Gary Metzger, manager of Zest Labs, said in a May statement.
