Just when you think that Wal-Mart had already exhausted every last possible strategy for screwing over its employees, here comes this story in the Wall Street Journal. Deborah Shank, a Wal-Mart employee gets into an accident with a semi and ends up permanently brain-damaged a few years back. Her Wal-Mart health insurance paid her medical bills, but she also sued the trucking company for damages. She wins $700,000, which after legal fees and expenses, nets her about $400,000, which was put in a trust to pay the nursing home she now lives in.
But Wal-Mart gets wind of the settlement and turns around and sues Shank for $470,000, the money its insurance company paid for her care from the accident. Now, the woman is reliant on Medicaid and Social Security and Wal-Mart apparently got a much needed windfall.
Wal-Mart isn’t alone in such behavior. Insurance companies seizing lawsuit winnings from catastrophically injured Americans is a common practice that gives lie to the notion that anyone gets rich off a personal injury lawsuit these days, as insurance companies often get first dibs on any judgment or settlement in such cases. But Wal-Mart’s cruelty, as always, is extreme in this case. Not only is Shenk profoundly disabled, but while her family was fighting off the company in court, her son was killed while fighting the war in Iraq. Not even bad PR like this, apparently, can eke out a drop of compassion from the retail giant.