April 9, 2018

RICO Class Action Filed Against Walmart, Bloomingdales, and Other Leading Retailers By Block & Leviton LLP

San Francisco / Block & Leviton LLP announced today that it has filed a nationwide class action lawsuit against Walmart (NYSE: WMT), Bloomingdales, DSW (NYSE: DSW), Burlington (NYSE: BURL), and other leading retailers (the “Retailer Defendants”) asserting, on behalf of its clients, claims under the Racketeer Influenced and Corrupt Organizations Act (“RICO”). The suit alleges that the Retailer Defendants have participated in a long-running racketeering scheme with a Utah company, Corrective Education Company (“CEC”), which operates a program that a California court recently described as “textbook extortion.” The case was filed in United States District Court for the Northern District of California, and is captioned Doe v. Walmart, et al., No. 5:18-cv-02125 (N.D. Cal.).

The lawsuit alleges that the Retailer Defendants have been detaining people at their stores, accusing them of shoplifting, and then offering a choice: pay $400 to $500 to CEC or be reported to criminal authorities.

“This case is intended to prove that we are all equal under the law,” said Block & Leviton partner, Jason Leviton. “Our country’s racketeering and extortion laws apply with equal force whether you’re a common street hoodlum or one of the Harvard MBAs who founded CEC. We’re trying to stop these illegal shakedowns and get compensation for victims.”

For more information or to view a copy of the complaint, please visit https://www.blockesq.com/cec.

If you have information relevant to this matter or would like additional information about your legal rights, please contact Jason Leviton, Joel Fleming, or Jacob Walker of Block & Leviton at 617.398.5600. Confidentiality to whistleblowers or others with information relevant to this matter is assured.

Based in Boston, Oakland, and Washington, D.C., Block & Leviton LLP is one of the country’s leading class-action law firms, representing consumers, employees, and investors nationwide.

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