Walmart to pay $4M in consumer discrimination lawsuit

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Walmart verdict overview:

• Who: Walmart was hit with a $4.4 million jury verdict for allegedly racially profiling a customer.
• Why: The jury found Walmart liable for continuing to employ a loss prevention employee with a reputation for making false police reports.
• Where: The Walmart racial profiling lawsuit was filed in Oregon circuit court.

Walmart Inc. is faced with a $4.4 million verdict for allegedly racially profiling and calling the police on a customer, according to Aug. 19 court documents.

The Walmart lawsuit, which was filed in December 2021, alleged that Walmart customer Michael Mangum, who is African American, was shopping for a light bulb when loss prevention employee Joe Williams racially profiled him.

Mangum says Williams ordered him to leave the store over his objections that he had done nothing wrong, then called the police to report that he “had a person refusing to leave.”

Williams allegedly told the non-emergency dispatch operator that Mangum “started flipping out on me” when he walked by. Police arrived at the Walmart but declined to take action against Mangum, partially because Williams had a reputation for making false reports about shoppers, according to the lawsuit.

Walmart discrimination lawsuit says retailer knew of employees’ reputation for making false reports

The Walmart discrimination lawsuit states that Walmart was aware that Williams had previously provided false information about customers to police.

A 2019 Oregon law (ORS 30.845) allows individuals to seek civil damages against employees who, acting within the scope of their employment, cause police officers to arrive with the intent to unlawfully discriminate against the individual, violate their constitutional rights, cause them to feel harassed or humiliated, cause them to be expelled from a place where they are lawfully located or damage their reputation or standing in the community.

Because Williams was allegedly known to provide false information to police, Walmart was aware that he was likely to engage in conduct that would violate this law, Mangum argued.

He says that, due to the discrimination he experienced, he continues to suffer from embarrassment, fear and humiliation.

The Walmart discrimination lawsuit asserted claims for violations of ORS 30.845, negligent supervision or retention and discrimination. Mangum sought $4 million in punitive damages from Walmart, plus $400,000 in noneconomic damages.

Friday’s Walmart verdict grants the maximum $4.4 million Mangum sought.

Walmart has already faced numerous class action lawsuits this year, including a shelf pricing class action lawsuit that accuses the retailer of misrepresenting the price customers will actually have to pay at checkout. 

What do you think about the Walmart verdict? Join the discussion in the comments!

Mangum is represented by Gregory Kafoury, Jason Kafoury, and Mark McDougal of Kafoury & McDougal.

The Walmart discrimination lawsuit is Michael Mangum v. Walmart Inc., et al., Case No. 20cv18273, in the Circuit Court of the State of Oregon, County of Multnomah.

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