A New York family-owned business filed a $15 million lawsuit last week against Walmart Inc. for allegedly refusing to pay for shipments of hand sanitizer it ordered.
K7 Design Group said in its lawsuit that Walmart’s Sam’s Club placed “very substantial” orders for hand sanitizer in spring 2020 as the product was flying off the shelves because of COVID-19.
“However, Sam’s Club apparently ordered more product than it needed and more than it could hold in storage pending retail sale,” said the suit, filed in U.S. District Court in Fayetteville.
Months into the pandemic, hand sanitizer wasn’t selling as it once was, leaving Sam’s Club with excess inventory, the suit said.
K7 said in the suit that once Sam’s Club realized it had over-ordered and didn’t have the space to store the thousands of pallets of hand sanitizer, “it refused to accept further deliveries and pay for a substantial portion of product orders, leaving K7 with millions of dollars worth of hand sanitizer” that it made for Sam’s Club.
K7 said it suffered more than $15 million in damages. It is seeking that amount plus other damages including interest and attorneys’ fees
K7 is represented by attorney David Newman of Sills Cummis & Gross of New York and the Fort Smith office of the law firm Hardin Jesson & Terry.
A spokesman for Walmart wasn’t immediately available for comment Thursday.
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