Judge dismisses suit claiming Walmart extorted shoplifters

A federal judge has dismissed a racketeering lawsuit that claimed Walmart Inc. and six other retailers committed extortion by coercing accused shoplifters to take pricey "restorative justice" classes. The three plaintiffs claimed part of the fees paid for the classes was returned to the retailers.

The lawsuit claimed the defendants violated federal anti-racketeering law. However, Judge Lucy Koh with the U.S. District Court in the Northern District of California wrote in an order filed late Friday that she found no proof of a nationwide conspiracy among the defendants to extort unlawful payments from the plaintiffs through a pattern of racketeering activity.

Accused of shoplifting in 2017 from Walmart stores in Florida, Georgia and Texas, the plaintiffs identified only as Jane Doe, Mary Moe and John Roe said they were told they would be turned over for prosecution if they did not admit guilt and agree to take the online class from Corrective Education Co. of Utah. The class costs $400 upfront, or $500 if paid in installments.

Koh granted a motion to dismiss the plaintiffs' claims against Bloomingdales Inc., Burlington, Kroger Co., 99 Cents Only Stores LLC, The Save Mart Companies Inc. and Sportsman's Warehouse Inc. The claims were dismissed with prejudice, meaning they cannot be brought again.

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