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Wal-Mart loses bid to stymie female class action discrimination lawsuit

Wal-Mart Stores (NYSE: WMT) will be facing a class action lawsuit from more than 2 million former and current female employees over discrimination and bias after all.

Earlier this week, an appeals court declined a request from world's largest employer to reconsider its decision to certify the case as a class action.
While this isn't a death sentence for Wal-Mart by any means, it's the start of what should be one of the largest class-action discrimination lawsuits in U.S. business history.

The lawsuit, originally filed in 2001 by six women, accuses the world's largest retailer of paying female employees less than male counterparts as well as passing over qualified female employees for promotions. It requested back pay and punitive damages as well as changes in Wal-Mart's employee practices. Wal-Mart responded by saying that it should be allowed to address each discrimination charge at each store on an individual basis.

Wal-Mart's breakup with former executives turns ugly

Wal-Mart Stores Inc. (NYSE:WMT) has accused former advertising executives Julie Roehm and Sean Womack of having a sexual relationship and of promoting themselves at an advertising agency involved in reviewing the retailer's business as job candidates.

Roehm, who was fired in December after being head of marketing communications for less than a year, denied Wal-Mart's claims and Womack couldn't be reached for comment, according to the New York Times. She's sued the company for breach of contract and fraud. Wal-Mart has filed a counter suit. Womack left Wal-Mart with Roehm.

It's a pity that Wal-Mart got rid of Roehm. She tried to give the retailer's advertising some much-needed pizazz. The company's advertising is as boring as ever, which at time of heightened competition from Target Corp. (NYSE:TGT) is not a good thing.

In other news, Wal-Mart withdrew its application to trade market the acronym for "Everyday Low Prices" after competitors objected, according to the Wall Street Journal. This underscores the new reality for Wal-Mart which now needs to convince customers that they can get quality along with low prices.

That's not going to be easy.

Wal-Mart needs to take a good, hard look at its brand. It's a pity that the person who was best equipped to do it is no longer with the company.

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Last updated: May 28, 2012: 08:40 AM

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