Food waste reduction technology startup Zest Labs triumphs in court as Walmart ordered to pay $222 million

An Arkansas federal jury has found that Walmart owes Zest Labs more than $222 million over claims that the US retail giant stole the firm's technology that extends the shelf life of produce. 

The jury concluded that Zest Labs proved its claim of “trade secret misappropriation” and found Walmart’s misappropriation was “willful and malicious,” according to court documents.

It awarded Zest $222 million, comprising $72.7 million in compensatory and $150 million in punitive damages against Walmart.

In a press release, Zest said:"This is one of the largest verdicts in Arkansas history and likely the highest trade secret verdict in the history of the state."

The verdict was secured by Patrick Ryan as lead counsel and his team from Bartko Pavia.

"Zest Labs developed groundbreaking technology aimed at addressing a significant humanitarian issue: food waste. Currently, a substantial portion of the food produced never even reaches the table. Addressing food waste is crucial for sustainability, economic efficiency, and ensuring that resources are used more efficiently," says Gary Metzger, Manager, Zest Labs.

"Our technology had the potential to reduce approximately 30-33% waste of perishable foods in half. But Walmart's misuse of Zest’s trade secret has hindered our ability to achieve the necessary scale to make a substantial impact and help feed the world.”

“This legal victory is a small but crucial triumph for small businesses that often face exploitation by larger corporations, robbing them of the opportunity to bring their innovative solutions to the market. It marks a significant step toward ensuring justice and fair play in the business world."

He adds: “After our first $110 million judgment was set aside and a new trial was ordered, Zest worried that it might never see justice for Walmart’s theft of our trade secrets. But we did not give up, searching long and hard to find the best lawyer to lead to us to victory.”

“Zest was fortunate to find Patrick M. Ryan of Bartko Pavia, who took over the case and litigated with tenacity, creativity, commitment, and passion. Patrick believed in us and our technology and we put our faith in him and Bartko Pavia, which has been vindicated by a verdict twice the size of the prior one.”

Patrick M. Ryan comments: “We are so appreciative of the jury’s courageous verdict, awarding a total of $222 million, which is more than Zest had requested. The jury heard the evidence and concluded that Walmart stole its revolutionary technology and incorporated it into a patent that was later published, destroying Zest’s trade secret.”

“The jury found that Walmart’s conduct was willful and malicious; thus, they sent a strong multi-million dollar deterrent message to companies like Walmart who might contemplate stealing the trade secrets of other small companies.”

“We strongly disagree with the verdict and believe it’s not supported by the facts. Zest Lab’s unethical behaviour has compromised the integrity of this case from the start. We expect our suppliers to uphold the highest ethical standards and will continue to advocate for fairness and justice,” a Walmart spokesperson says.

2025 RTIH INNOVATION AWARDS

Food waste prevention solutions will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.