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Wal-Mart Drops Fight Against Woman

CNN
Posted: 2008-04-02 07:17:52
Filed Under: Money, Nation News
(April 2) - A former Wal-Mart employee who suffered severe brain damage in a traffic accident won't have to pay back the company for the cost of her medical care, Wal-Mart told the family Tuesday.

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Reversing itself, Wal-Mart has given up its fight against Debbie Shank, a former employee who suffered severe brain damage after a traffic accident. Shank, 52, received about $470,000 from the retailer's health plan for medical expenses, and the the company had sued to get the payout back after she won money in a settlement.


"Occasionally, others help us step back and look at a situation in a different way. This is one of those times," Wal-Mart Executive Vice President Pat Curran said in a letter. "We have all been moved by Ms. Shank's extraordinary situation."

Eight years ago, Debbie Shank was stocking shelves for the retail giant and signed up for Wal-Mart's health and benefits plan.

After a tractor-trailer slammed into her minivan, the 52-year-old mother of three lost much of her short-term memory and was confined to a wheelchair. She now lives in a nursing home.

She also lost her 18-year-old son, Jeremy, who was killed shortly after arriving in Iraq. When Debbie Shank asks family members how her son is doing and they remind her that he's dead, she weeps as if hearing the news for the first time.

Wal-Mart's health care plan lets the retail giant recoup the cost of its expenses if an employee collects damages in a lawsuit. And Wal-Mart set out to do just that after Shank and her husband, Jim, won $1 million after suing the trucking company involved in the wreck. After legal fees, the couple received $417,000.

Wal-Mart sued the Shanks to recoup $470,000 it paid for her medical care. However, a court ruled that the company could only recoup about $275,000 -- the amount that was left in a trust fund for her care.

The Shanks appealed to the U.S. Supreme Court, but the court declined in March to hear the case. CNN told the couple's story last week, prompting thousands of angry blog responses and at least two online petitions to boycott the company.

On Tuesday, Wal-Mart said in a letter to Jim Shank that it is modifying its health care plan to allow "more discretion" in individual cases.

"We wanted you to know that Wal-Mart will not seek any reimbursement for the money already spent on Ms. Shank's care, and we will work with you to ensure the remaining amounts in the trust can be used for her ongoing care," Curran said.

"We are sorry for any additional stress this uncertainty has placed on you and your family."

Wal-Mart's reversal came as shock to Shank.

"I thought it was an April Fool's joke," he told CNN.

"I (would) just like to let them know that they did the right thing. I just wish it hadn't taken so long," Shank said. "But I thank them and I hope they come through with all that they said they're going to do."

2008-04-02 06:45:50
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4055 comments

mustang200262619 02:11:15 AM Apr 06 2008

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I just want to say that I am glad that wal-mart dropped this suit.This family has had enough tragidity to last the rest of there lives.Good job wal-mart you done the right thing.

chizmarlan 08:35:02 AM Apr 05 2008

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Wal-Mart didn't hit her with a truck?

mclifesbane 02:09:58 AM Apr 05 2008

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Just a thought, did they fire their lawyers that wanted to sue?

wolverine368 11:22:52 PM Apr 04 2008

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take George Bush,,and put his head up walmarts a ss,,then let them ******** shit his dumbass out hahahahahahaha

howray44 03:25:22 PM Apr 04 2008

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My step Grandson was an emploee of Wal Mart. He died unexpectedly. Wal Mart took extremly good care of his famioly before during and after the funeral.The family has nothing but the highesst regard for Wal mart..I know of many Companies who have treatd theirpoyeesvery poorly but in this case I would have to say they were outstanding.

hcdlynn 04:48:44 PM Apr 03 2008

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Wal-Mart treats their employees like crap and pay the BIG SHOTS MILLIONS.....Sam is rolling in his grave the way they run "HIS" company. Mr. Walton always took care of his people.....he remembered without them he wouldn't have what he did. former employe

violetsp9 10:02:21 AM Apr 03 2008

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TARGET HAS CHEAP FOLKS AND SO DOES KOHL'S AND ROSS

violetsp9 10:02:10 AM Apr 03 2008

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TARGET HAS CHEAP FOLKS AND SO DOES KOHL'S

violetsp9 10:01:22 AM Apr 03 2008

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WALMART NEEDS A SERIOUS BOYCOTT BY AMERICANS IF WE ARE TO GET THAT COMPANY STRAIGHTENED OUT

bac185 05:11:22 AM Apr 03 2008

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Boycott? In these hard time yeah I will go to another Store and pay twice the amount for what I can there on the cheep. Every business has its slip ups. Over all WMT is the best retailer in the world. Remember they are a RETAILER not an insurance co. I am sure someone gave them poor advice,

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