Walmart To Pay Out Millions in California Lawsuit: What To Know

Walmart has agreed to pay millions to settle a consumer protection lawsuit that alleges the company has been overcharging its customers.

According to the District Attorney’s Office of Santa Clara, California, Walmart’s alleged actions violate the state’s false advertising and unfair competition laws, and the retailer will pay $5.6 million to settle the case.

Newsweek has contacted Walmart through its website and the Santa Clara District Attorney’s Office via email outside regular business hours for further comment.

Why It Matters

Walmart, based in Bentonville, Arkansas, is the largest retailer in the U.S.—with more than 4,000 locations and 280 stores in California alone. The company has grappled with a number of issues in 2025, including tariffs affecting its margins, which briefly brought Walmart into conflict with President Donald Trump when it announced that it was considering pricing adjustments. The company has also faced periodic boycotts over changes to its diversity hiring initiatives and broader opposition to its corporate practices.

What To Know

The lawsuit stemmed from a civil complaint filed by a group of district attorney’s offices, including Santa Clara County, alleging that Walmart “unlawfully charged customers prices higher than their lowest advertised or posted price.”…

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