Walmart Organized Retail Crime Class Action Litigation

Artistic Industries, LLC et al., v. Walmart, Inc., et. al., Case No. 1:24-cv-01044 (D. Del.)

Chimicles Schwartz Kriner & Donaldson-Smith filed a class action complaint in the United States District Court for the District of Delaware on September 17, 2024, asserting claims on behalf of Amazon Merchants against Walmart Inc., Wal-Mart.com USA, LLC and named and unnamed Fraudulent Sellers, all of whom created and implemented an Organized Retail Crime Enterprise, whereby they listed and operated Fraudulent, Deceptive, and Anticompetitive Postings and Offers to Sell on Walmart Marketplace, but fulfilled these sales by placing Fraudulent Amazon Orders of Amazon Merchants’ products under false pretenses, misrepresenting or omitting key facts concerning their ability and/or willingness to pay. Defendant Walmart allowed the Fraudulent Seller Defendants to copy and list the Amazon Merchants’ products for purported sale on bogus Walmart Marketplace Seller StoreFronts, Seller Catalogs and Product Pages containing abjectly false information and omitting material information notwithstanding that: (a) these listings were Fraudulent Seller StoreFronts containing false information as to, inter alia, actual seller, the Brand Names for the products, and delivery; (b) the Fraudulent Seller Defendants did not have and/or would not obtain lawful possession of these products in order to make a sale to a Legitimate Walmart Customer; (c) never intended to have the goods sold to the Legitimate Walmart Customer be delivered by and through the Fraudulent Seller Defendants; (d) would place Fraudulent Amazon Orders, purporting to purchase Amazon Merchants’ goods, but request delivery to the unsuspecting Legitimate Walmart Customer; (e) intended to induce Amazon Merchants into reasonably relying on Defendants’ payment in order to deliver the items where requested; and (e) intended to deceive Amazon Merchants by making a False Refund Request with the untruthful representation of non-delivery of the goods when, in actuality, the Legitimate Walmart Customer did receive the ordered product.

The Complaint brings claims under the Racketeering Influenced and Corrupt Organizations Act, the Lanham Act, state consumer fraud statutes and for other violations of common law.

You can view a copy of the complaint here:  [link]

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