Not all clients are good clients. Different warehousing companies received an offer from Walmart Inc. to take in possession of enormous quantities of a product for a short period until they could resell the product. In exchange, Walmart offered to pay them well.
The warehouses accepted the business, excited for their new client without suspecting that Walmart would cease all contact and neglect to pay for storage or disposal of the products.
Why did Walmart leave the products in the warehouses?
During the pandemic, Walmart bought a new disinfectant, “Disinfex” to sell in their stores. After buying the product, Walmart realized that Disinfex had not been registered with the US Environmental Protection Agency, which meant that the 3 million units they bought could not legally be sold.
How did the case end?
Walmart Inc. agreed to a settlement with the warehouse’s companies in a lawsuit. According to the settlement notice filed by the plaintiffs on Friday, Walmart agreed to a confidential settlement with Pixior Global Logistics LLC and E-Comm Fulfillment 3PL.
In this case, it is very clear that Walmart Inc acted questionably. The worst thing is that something similar can happen to any business owner. It could happen to me, or it could happen to you. Screen your clients before taking their business because, as you can see, not all clients are good clients for your business. If you need help and operate in California, contact Focus Law at (714) 415-2007 or reach us by clicking here.