The price of Ecoark Holdings, Inc. (OTCQB: ZEST) stock closed up 47.00% to $5.88 in the past session. A total of 385,699 shares changed hands during the trading session, with the Ecoark stock price fluctuating between $4.07 and $6.40. As a result of winning a lawsuit against Walmart, ZEST stock headed for the roof.
What was the lawsuit filed for?
Founded in 2011, Ecoark is a diversified holding company. One of ZEST’s wholly-owned subsidiaries is Zest Labs Inc., another is Banner Midstream Corp., and the third is Trend Discovery Holdings.
Ecoark announced that on Friday, April 9, 2021, a Little Rock, Arkansas jury awarded a decision in favor of Ecoark. The jury awarded ZEST’s wholly-owned subsidiary, Zest Labs a total of $115 million in damages in a lawsuit against Bentonville-based Walmart, the world’s largest company as measured by annual revenue.
- In the initial lawsuit filed in August 2018, three grounds of liability were established against Walmart.
- In details, the jury found that Walmart misappropriated trade secrets belonging to ZEST.
- A written contract was also violated by Walmart and its misappropriation of ZEST’s trade secrets was based on willful and malicious conduct.
- Walmart will also have to pay ZEST $50 million in punitive damages in addition to the $65 million in compensatory damages.
What was the breach?
The lawsuit filed by Ecoark (ZEST) against Walmart alleges that it used and divulged trade secrets belonging to ZEST relating to reducing fresh food losses and waste as more than one-third of all fresh food is discarded before it is eaten.