After Adverse Publicity, Wal-Mart Drops $400,000 Health Care Claim Against Former Employee Disabled in Traffic Accident

Debbie’s family later successfully sued the trucking company whose driver was involved in the accident. After attorneys’ fees and expenses, the $417,000 dollars from the settlement was put in a trust for Debbie’s care. That’s when Wal-Mart stepped in and sued the Shanks to recover the medical costs. Wal-Mart won the case in court. Last summer, the family appealed the ruling and but Wal-Mart won. One week later, their 18-year-old son, Jeremy, was killed in while serving in the Army in Iraq.

Refusing to give up, the family appealed to the Supreme Court. But last month, the high court said it would not hear the case. The family’s financial situation became so dire that last year Debbie’s husband, Jim, divorced her, so she could receive more money from Medicaid.

Debbie’s case generated a public outcry after it was recently featured on several national news networks and newspaper editorials. Then, yesterday afternoon, Wal-Mart announced it had reversed its decision and said that it no longer will seek the money. In a statement, Wal-Mart said, “We have decided to modify our plan to allow us more discretion for individual cases, and are in the final stages of working out the details. Wal-Mart will not seek any reimbursement for the money already spent on Ms. Shank’s care, and we will work with the family to ensure the remaining amounts in the trust can be used for her ongoing care. We are sorry for any additional stress this has put on the Shank family.”

Jim Shank is Debbie’s husband. He joins us now on the telephone from Jackson, Missouri.

Jim Shank, Debbie Shanks’ husband.

Related Links

• Campaign for the Shank Family