Wal-Mart Decision to Reduce Future Class Actions for Corporations

This week’s Supreme Court ruling in favor of Wal-Mart on Monday raises significant hurdles for future class action suits brought against big corporations.

“The Wal-Mart ruling sets a high standard for aggrieved employees and former employees to successfully certify a class,” says Reginald Belcher, a shareholder and Certified Specialist in Employment and Labor Law at Turner Padget Graham & Laney, PA (Columbia, S.C.). “Nevertheless, the ruling did not foreclose class actions of employment claims altogether, as the court stressed the possibility of certifying a class that identified a ‘specific employment practice’ that produced a sex (or race) based disparity. This particular group of current and former employees lacked the strong statistical and anecdotal evidence needed to prove their case.”

According to Mr. Belcher, the court’s decision demonstrates that the larger the potential class, the less likely that it would be able to prove that a “specific employment practice” injured the potential class members in the same way, thereby defeating class certification.

“The ruling will force many aggrieved employees and former employees, particularly with large employers, to seek individualized relief under federal discrimination statutes, as opposed to class wide relief,” he says.

Mr. Belcher is available for interviews to discuss the impact of the Supreme Court’s ruling. [06/23/2011]