- The stock price of Ecoark Holdings, Inc. (OTC: ZEST) increased by 47% yesterday. This is why it happened.
The stock price of Ecoark Holdings, Inc. (OTC: ZEST) increased by 47% yesterday as it went from a previous close of $4 to $5.88. Investors were responding positively to
Ecoark announcing that on Friday, April 9, 2021, a Little Rock, Arkansas jury awarded Ecoark and its wholly owned subsidiary Zest Labs a total of $115 million in damages in a lawsuit against Bentonville-based Walmart, the world’s largest company as measured by annual revenue.
Walmart was found liable on 3 claims from the original lawsuit filed in August 2018. The federal jury found that Walmart misappropriated Zest’s trade secrets, failed to comply with a written contract, and acted willfully and maliciously in misappropriating Zest’s trade secrets. Along with the $65 million in compensatory damages, the award includes $50 million in punitive damages for Walmart’s willful and malicious conduct.
The lawsuit had accused Walmart of using and disclosing trade secrets of Zest relating to reducing and fighting the worldwide problem of fresh food loss and waste. About one-third of all fresh food is thrown away as waste before consumption.
Ecoark and Zest plan to file post-trial motions in the coming weeks to add an award of their attorneys’ fees as the prevailing party in the litigation. And Ecoark will provide additional updates on this lawsuit and award in the coming weeks.
The case was Zest Labs, Inc. et. al. v Walmart, Inc. case number 4:18-cv-500-JM, in the United States District Court for the Eastern District of Arkansas, Central Division.
“We are grateful that the jury understood and acknowledged the evidence that supported Zest’s claims. This outcome further validates the unique and valuable solutions that Zest Labs built, and underscores the strength of our intellectual property.”
— Peter Mehring, CEO of Zest Labs
“We are happy that we had our day in court and that the jury found that Walmart misappropriated our trade secrets and breached the agreement between the parties. The damages awarded were strongly supported by the evidence. The jury verdict also allows us to file motions seeking attorneys’ fees and costs. We do not believe Walmart has any basis to appeal the verdict and doing so will only confirm that the judgment was proper. Intellectual property is key to America’s modern economy. The jury understood that protecting trade secrets is the right thing to do and critical to future business operations in Arkansas. We plan to file an appeal of some of the Judge’s pre-trial rulings to make sure that Walmart is held fully accountable for its actions. The appeal will allow Ecoark and Zest to seek additional liability and damages findings against Walmart to ensure that innovative businesses are protected from misappropriation of their technologies.”
— Randy May, Chairman and Chief Executive Officer of Ecoark, via the Arkansas Times
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