On May 13, 2025, a jury in an Arkansas federal court ruled that Walmart was required to pay a total of $222 million (approximately Rs. 1.6 billion) in damages to tech startup Zest Labs for improperly using Zest Labs' food preservation technology trade secrets. According to the judgment, Walmart is liable for $72.7 million in compensatory damages and $150 million in punitive damages.
    Zest Labs, a US-based agri-tech company specializing in food preservation and freshness management technologies, filed the lawsuit in 2018, alleging that during the 2014-2017 partnership, the parties signed a confidentiality agreement to allow Walmart to use its patented supply chain mitigation technology (Zest Fresh), which was designed to reduce perishable food products by 30% by monitoring the freshness of produce waste. However, Walmart moved from being a customer to a competitor, using the acquired trade secrets to develop and patent its own technology (Eden).

    In 2021, Zest Labs had a $115 million damages verdict upheld by a jury, but was put on hold and granted a new trial due to procedural issues. The case then stalled until May 13, 2024, when a federal district court jury unanimously approved a new verdict determining that damages rose to $222 million.

     Walmart denies the allegations, emphasizing that the “Eden” technology was developed independently, stating that the case “lacks fairness due to the actions of Zest Labs” and that it will file an appeal and post-trial motions. At this time, the final outcome of the case may be adjusted as the appeal proceeds.