Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
A group of local and family-owned Puerto Rican businesses have filed a $1 billion class action lawsuit against some of the nation’s biggest retailers over claims the retail giants violated government orders to only sell essential items in the early days of the coronavirus pandemic.
The Puerto Rican businesses say Walmart, Costco, Walgreens and CVS cost them at least $38.7 million by selling non-essential goods during a state of emergency that only allowed the sales of food, medicine and medical equipment. As a result, they filed the class action lawsuit and are seeking to represent countless other Puerto Rican businesses that also suffered financial loss while the defendants were making sales.
“Through their illegal sales, [the] defendants created an oligopoly,” the Puerto Rican businesses class action lawsuit reads. It goes on to say the national retailers “co-monopolized the Puerto Rican trade when 95% of the businesses in Puerto Rico were under compulsory closure.”
Puerto Rico Governor Wanda Vázquez Garced declared an island-wide state of emergency on March 12, the day after the World Health Organization declared the global health crisis created by COVID-19 had become a pandemic. Three days after the state of emergency was declared, the governor issued the first of a series of executive orders establishing a curfew and curbing retail sales in Puerto Rico, among other things.
All non-essential businesses were to close, except those providing essential items to the public – including food, medicine and medical equipment – also referred to as “articles of first necessity.” Subsequent executive orders calling for similar restrictions were issued later in March, April and May, the class action says.
During the early days of the pandemic-driven restrictions on Puerto Rico businesses, the big chain stores “cordoned off the areas” where the items that could not be sold were located, but continued to sell the items anyway, the plaintiffs claim. Later, the barriers were removed. The stores sold “hundreds of millions of dollars” worth of clothing, shoes, televisions, appliances, household goods and other non-essential goods during that time, the Puerto Rican businesses claim.
Meanwhile, the six plaintiff businesses that filed the class action lawsuit either remained closed or sold only the “articles of first necessity” as the governor ordered, they say.
Among them are J. Pica y Cía. Inc., a family department store chain founded in 1963 that estimates it lost $25 million in sales due to the “intentional violations and unfair and disloyal business practices” of the defendants.
Kress Stores, a family business also founded in 1963 that sells women’s and children’s clothing in 38 stores across the island, says it lost $8.2 million, according to the class action lawsuit.
Humberto Vidal Inc., another family business founded in 1971, has 41 “shoe, stockings, and wallet stores” and lost an estimated $3.1 million because of the defendants’ pandemic sales practices, the Puerto Rican businesses class action says.
Valija Gitana Inc., in business since 1994, operates 12 clothing, accessories, and jewelry stores and lost at least $2 million, according to the class action lawsuit.
J.M.J. Appliances Corp., is a family furniture and appliance business with three stores suffered a loss at least $400,000, the class action claims. And Antonio Bayón and Elba Casiano, who own two Junelba discount stores, lost an estimated $50,000 at least.
“While the defendant megastores and chain pharmacies were profiting in the millions through their intentional violation of the executive order,” the non-essential goods class action says, “the local merchants, abiding by the law, observed the unfair competition as their businesses plummeted and their employees became impoverished.”
The six Puerto Rican businesses first filed their class action lawsuit in Superior Court in Puerto Rico on Aug. 6, then filed an amended version on Aug. 19. On Sept. 8, Costco petitioned the U.S. District Court in Puerto Rico to have the case moved to the federal court.
“These companies gained power and control in the retail market in Puerto Rico, and abusing that power in the market, illegally monopolized it by carrying out prohibited sales,” the Puerto Rican businesses class action lawsuit alleges.
“The net effect of these actions was the illegal hijacking of the market by [the] defendants, to the detriment of competition and the local merchants for a period of 11 weeks.”
The plaintiffs are seeking at least $1 billion in damages.
Was your business hurt financially by abiding by emergency restrictions on sales during the pandemic while giant retail chains did not? Tell us about it in the comment section below.
The plaintiffs and proposed Class Members are represented by Luis N. Saldaña, Ian P. Carvajal Zarabozo, Fernando Sabater and Ángel E. Rotger Sabat of Saldaña Carvajal & Vélez-Rivé, PSC in San Juan, Puerto Rico.
The Puerto Rican Businesses Class Action Lawsuit is Kress Store of Puerto Rico, et al. v. Wal-Mart Puerto Rico Inc., et al., Case No. 3:20-cv-01464, in the U.S. District Court for the District of Puerto Rico.
Coronavirus Lawsuits & Legal Issues
Since the COVID pandemic shut down the country, Top Class Actions has been keeping you up to date on the latest Coronavirus lawsuits and legal issues.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
