Walmart pays $2 million to settle life insurance lawsuit

Sep 30, 2011

Walmart is settling a lawsuit after allegedly taking out life insurance policies for employees without their knowledge.

In a class-action lawsuit alleging that a Walmart corporate secretary took out life insurance policies on some of the company's Florida workers during the 1990s, Walmart will now have to pay a $2 million settlement, according to the Tampa Tribune

With attorney fees and other costs, the news source said about $5,800 will be paid out to the estates of more than 200 deceased former employees. Two lead plaintiffs, Richard Armatrout of Tampa and Wayne Atkinson of Pasco County, will each receive $10,000 in the settlement. The wives of the plaintiffs were former employees of the retail giant.

The Tampa Tribune said that the company received $55,000 to $90,000 on each policy payout. This settlement ends a string of litigation that started more than four years ago, according to the report.

According to a 2007 report from The Tampa Tribune, 350,000 employees were secretly insured by Walmart nationwide, according to Texas attorney Michael Myers. Myers estimated that the company had collected on 75 to 100 policies involving Florida employees who had died. The company did not comment on this article due to the pending lawsuit.

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