U.S. Chamber Files Brief in Wal-Mart Class Action

WASHINGTON, D.C. – The United States Chamber of Commerce released its filing in Dukes, et al. v. Wal-Mart Stores Inc., urging the 9th U.S. Circuit Court of Appeals to reverse a lower court ruling certifying a class action of up to 1.6 million plaintiffs in a discrimination case against the retailer.

"This decision creates a perilous predicament for businesses—potentially limitless claims with limited ability to defend against them," said Robin Conrad, Senior Vice President of the National Chamber Litigation Center. "The lower court's ruling has broad, negative implications with no basis in law, and for these reasons, it must be reversed."

The Chamber's brief contends the district court's order creates perverse incentives that encourage employers to forego defending their rights in court in favor of settlement and, to prevent future lawsuits, adopt quota-like policies that are contrary to the purposes and spirit of Title VII of the Civil Rights Act. The Chamber also notes that businesses make countless employment decisions each year in accordance with the requirements of Title VII, but if the lower court's decision is allowed to stand, it could have deeply destructive effects on the policies and practices of American employers.

"If the court allows a class action certification of this scope to stand, it risks summarily stripping businesses of their right to defend themselves against unwarranted claims," Conrad said.

"The potential financial exposure to an employer facing a class action of this size creates tremendous pressure to settle regardless of the case's merit. To avoid this trap, and ensure fairness and due process, the appeals court must reverse the district court's decision."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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