Trial Magazine

Zest Labs, Inc., a subsidiary of Ecoark Holdings, Inc., is a company that offers shelf-life and freshness management solutions—including the Zest Fresh solution—for food retailers and others.

Over the course of several years, Zest Labs engaged in significant discussions, presentations, and product trials with Wal-Mart Inc. to help the company with its goal of reducing food waste. Wal-Mart employees, including members of its executive leadership team, gained access to valuable Zest Labs trade secrets during this time. Wal-Mart later told Zest Labs that it was no longer interested in Zest Fresh technology.

Four months later, Wal-Mart announced its Eden system, which looked and functioned very similar to Zest Fresh, and claimed that its associates and engineers had developed Eden in just six months.

Zest Labs and Ecoark Holdings sued Wal-Mart, alleging misappropriation of trade secrets and breach of the parties’ nondisclosure agreement. The plaintiffs asserted that the defendant integrated the Zest Labs technology without authorization and without providing compensation.

The jury awarded $115 million, including $50 million in punitive damages.

Citation: Zest Labs, Inc. v. Wal-Mart Inc., No. 4:18CV500 JM (E.D. Ark. Apr. 13, 2021).

Plaintiff counsel: Bart W. Calhoun, Dustin B. McDaniel, and Scott P. Richardson, all of Little Rock, Ark.; Fred I. Williams, Michael Simons, and Sarah Tishler, all of Austin, Texas; Ross D. Carmel, New York City; Todd E. Landis, Dallas; and Eric J. Magnuson, Minneapolis.