Case Background

Zest Labs, Inc., a company focused on reducing fresh food waste through its Zest Fresh solution, entered into a multi-year relationship with Walmart. The partnership began in 2014 with Walmart showing interest in Zest’s technology to tackle the industrywide issue of Fresh Food Shrink. Zest shared trade secrets, proprietary algorithms, software platforms, and supply chain techniques with Walmart under confidentiality agreements. Walmart participated in pilots and testing phases, giving Zest the impression that a commercial rollout was imminent.

However, in late 2017, Walmart abruptly ended their engagement. By March 2018, Walmart launched a competing platform called "Eden," claiming it had been developed in just six months. Zest Labs filed suit, alleging Walmart had stolen its proprietary technology and used it to develop Eden without consent or compensation.

The cause that led to the dispute

Zest Labs and its parent company, Ecoark Holdings, brought claims of trade secret misappropriation under the federal Defend Trade Secrets Act and the Arkansas Trade Secrets Act. They also accused Walmart of breach of contract, fraud, conversion, unfair competition, unjust enrichment, and more.

Injury suffered

Plaintiffs argued that Walmart's misappropriation of Zest Fresh cost them billions in lost profits and opportunities. They claimed Eden was essentially a replica of Zest Fresh, built using stolen data and know-how. This, they said, not only deprived them of licensing revenue but also harmed their credibility and busin