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Wal-Mart Settlement Means Money For Employment Lawyers

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A Superior Court Judge in Woburn, Massachusetts approved a $40 million settlement in an employment class-action lawsuit against Wal-Mart Stores last month. Bloomberg Businessweek reports that approximately 87,000 employees at Wal-Mart and Sam's Club stores will be paid anywhere from $400 to $2,500, since courts ruled that workers of the corporate chain were forced to "work off the clock" and had their breaks cut short.

The settlement is considered a huge victory for Wal-Mart workers and labor rights activists. Yet certain activists and even some Houston employment lawyers might question how the money is being distributed. The settlement initially included as much as a $15.2 million (38 percent of the total settlement) to the lawyers that worked on the case. After nine years of litigation between multiple law firms, some may have viewed this amount as fair.
"Under no circumstances is a fee of 38 percent of the total settlement reasonable," employment lawyer John J. Pentz told Bloomberg Businessweek.

Attorney Robert Bonsignore eventually gave into all the criticism and withdrew his request for all of his expenses with the case. Some people may also criticize the settlement money distribution with this case. The individual payments of the settlement are reportedly based on the number of years of employment, not proved damages by individual employees. However, with class action lawsuit this payment distribution method is quite common.

In addition to this class action suit regarding overtime pay, the Wal-Mart company is also in the middle of the largest class action suit in U.S history. The case may involve as many as 2.5 million women who claim that they were victims of ex discrimination in pay and promotions.

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