Court gives go-ahead for Wal-Mart gender lawsuit

SAN FRANCISCO - A divided federal appeals court exposed Wal-Mart Stores Inc. to billions of dollars in legal damages when it ruled Monday a massive class-action lawsuit alleging gender discrimination over pay for female workers can go to trial.

In its 6-5 ruling, the Ninth Circuit U.S. Court of Appeals said the world's largest private employer will have to face charges that it pays women less than men for the same jobs and that female employees receive fewer promotions and have to wait longer for those promotions than male counterparts.

Bloomberg News reported that potential plaintiffs exceed 1 million, according to Brad Seligman, an attorney for the workers. The case is the biggest private gender-bias case in U.S. history. Women who have worked at Wal-Mart since 2001 can join the class. The retailer, based in Bentonville, Ark., has fiercely fought the lawsuit since it was filed in 2001 by six women.

Wal-Mart successfully convinced the appeals court to revisit its 2007 ruling made by a three-judge panel with a larger 11-judge panel, arguing that women who allege discrimination should file individual suits.

Wal-Mart with 2.1 million workers worldwide - more than 1 million in the United States - argued that conventional rules of class-action suits should not apply because each outlet operates as an independent business.

Jeff Gearhart, Wal-Mart's top lawyer, said the company is considering its next step, which could include an appeal to the U.S. Supreme Court.

"Walmart is an excellent place for women to work and fosters female leadership among our associates and in the larger business world," he said. - AP