Walmart Ordered to Pay $34.7 Million in Defamation Lawsuit to Former Truck Driver

Walmart has been dealt a significant legal blow following a California jury’s decision to order the company to pay $34.7 million to Jesús “Jesse” Fonseca, a former truck driver who worked for the retail giant for 14 years. Fonseca filed a defamation lawsuit against Walmart, alleging that the company unjustly defamed him, causing damage to his reputation and personal life.

Fonseca was an exemplary employee, recognized both internally and externally for his leadership and contributions. He was involved in hiring and safety committees and even featured in a national television commercial as the face of Walmart truckers. However, his career took a turn in 2017 when he was involved in a workplace accident and placed on medical leave under workers’ compensation. Despite being instructed by his doctors to avoid driving commercial vehicles for extended periods, Fonseca informed Walmart about his plans for a family trip in a recreational vehicle (RV) and a cruise with his wife.

The conflict escalated when Walmart’s workers’ compensation management hired external investigators to monitor Fonseca’s activities. He was recorded driving the RV and engaging in restricted activities like bending. Walmart concluded that Fonseca acted with “intentional dishonesty” and fired him for violating the company’s code of ethics. Fonseca argued that the medical restrictions applied only to his work environment, not his personal activities.

In 2019, Fonseca sued Walmart, alleging defamation among other charges. The jury heard testimony that Walmart failed to properly investigate the circumstances or consider Fonseca’s explanations before making its decision. A San Bernardino County jury ultimately ruled in Fonseca’s favor, awarding him $9.7 million in compensatory damages and $25 million in punitive damages. Fonseca’s lead attorney, David deRubertis, described the case as reflecting a “malicious” Walmart policy against injured workers.

Walmart has responded to the verdict by calling it “outrageous” and stating that it will seek all available legal remedies to overturn the decision. However, Fonseca’s attorneys argue that the case sets an important precedent for protecting the rights of injured workers facing unfair retaliation. The ruling has brought Walmart’s labor policies and treatment of injured employees into the spotlight, highlighting concerns that the company prioritizes its interests over fairness and justice for its workers.

The financial and reputational impact of this ruling could influence how Walmart and other large corporations manage labor relations in the future. For now, Fonseca sees the verdict as a moral victory, emphasizing the importance of standing up against what he and his lawyers describe as a malicious policy.