California Jury Awards $34 Million to Former Walmart Driver in Defamation Case

A jury in California has determined that Walmart defamed a former truck driver with inaccurate allegations of workers’ compensation fraud, resulting in a decision that mandates the retail giant to pay in excess of $34 million in damages. This verdict was delivered after the jury deliberated on a case involving Jesus Fonseca, who was employed by Walmart for over 14 years before his dismissal.

The jury’s decision, which was filed this week, included the awarding of $25 million in punitive damages along with $9.7 million in actual damages to Fonseca, according to reports from USA TODAY. Fonseca’s legal representative, David deRubertis, issued a public statement asserting that the defamation was part of an alleged broader scheme by Walmart to pressure injured employees back to work prematurely or, failing that, to dismiss them and thereby reduce workers’ compensation expenditures.

The conflict arose after Fonseca was injured in a workplace-related accident where his semi-truck was rear-ended. Subsequently, Fonseca filed for workers’ compensation, reporting to the company that he had medical restrictions that limited his driving capabilities. Despite this, he was terminated after Walmart purportedly cited surveillance which allegedly depicted Fonseca driving his personal vehicle and performing activities such as bending.

In the complaint made public by USA TODAY, Fonseca’s legal team argued, «The notion that someone possibly performing daily activities outside of their work restrictions amounts to fraud is preposterous.» They contended that even if an employee inadvertently violates work restrictions, it should not automatically lead to fraud allegations.

Walmart, however, has expressed substantial disagreement with the jury’s ruling. «This outrageous verdict simply does not reflect the straightforward and uncontested facts of this case. Accordingly, we will pursue all available remedies,» Walmart stated in a response shared with USA TODAY.

David deRubertis articulated via social media that Fonseca had been compelled by Walmart to disclose to potential employers that he had committed fraud and violated the company’s integrity policies. This, according to deRubertis, was part of a strategy to intimidate injured truck drivers.