Walmart said Thursday it will pay $50 million to settle a lawsuit over RYKKA shoes.
The company will pay the plaintiffs, who sued the retailer for not giving them enough product, the equivalent of $5 per pair, Walmart said in a statement.
Walmart’s $50-million payment is the first step in the case, which has been going on for more than five years.
The plaintiffs, the American Apparel Group, said they are asking the court to find that Walmart violated the federal Fair Labor Standards Act by failing to pay them for products made at the warehouse where RYKKA was located.
“The company has acknowledged that it violated federal law by not paying the plaintiffs enough for products that were made at its RYKI warehouse,” the statement said.
“As a result of this settlement, Walmart will pay plaintiffs $50.7 million to cover the damages they have suffered as a result.
The settlement was approved by a judge on Thursday.”
Walmart, which owns Target, TJX, Home Depot, Lowe’s, and other brands, faces lawsuits over the way it delivers its goods.
In August, the company settled a class action lawsuit with the U.S. Department of Labor alleging it violated the Fair Labor Act by not providing workers with the minimum wage, overtime pay, and health and safety protections they were owed.
The complaint alleged Walmart was responsible for the death of an employee and the wrongful imprisonment of another employee, who Walmart denied.
Walmart said at the time it would pay the victims a total of $100 million.