Wal-Mart Must Pay Driver $34.7 Million for Defamation, Jury Says

Wal-Mart must pay a former driver $34.7 million after a California jury found that the company defamed him with false claims of workers’ compensation fraud.

The two-part verdict was filed in California Superior Court, San Bernardino County on Wednesday and Nov. 19. The jury said Jesus Fonseca should receive $25 million in punitive damages and $9.7 million in actual damages.

Fonseca was injured on the job when his semi-truck was rear-ended by another such truck, and after filing a workers’ compensation claim he was under a doctors order restricting driving at work. The company fired him, citing surveillance that he drove a personal vehicle.

“The notion that someone possibly performing daily activities outside of their work restrictions amounts to fraud is preposterous,” Fonseca’s complaint said. “Yet, even if an employee with work restrictions inadvertently violates them, this does not amount to fraud in the workplace.”

The complaint said Fonseca, who worked 14 years for Wal-Mart, has been forced to repeat defamatory statements that he committed fraud and violated integrity policy to prospective employers.

He was accused of an integrity violation that let Wal-Mart immediately fire him and mark him as ineligible for re-hire, Fonseca’s attorneys said in a news release.

“Walmart’s defamation of Jesse was part of a broader scheme to use false accusations to force injured truckers back to work prematurely or, if not, terminate them so that Walmart can cut down workers’ compensation costs,” lead attorney David M. deRubertis said in a news release. “Hopefully, this historic verdict will be the beginning of change from Bentonville.”

Wal-Mart said in a statement Thursday, “This outrageous verdict simply does not reflect the straightforward and uncontested facts of this case. Accordingly, we will pursue all available remedies.”

The deRubertis Law Firm APC and Eldessouky Law APC represent Fonseca. Constangy Brooks Smith & Prophete LLP represents Wal-Mart.

The case is Fonseca v. Wal-Mart Assocs. Inc., Cal. Super. Ct., No. CIVDS1909501, 11/20/24.