Zest Labs and its parent company Ecoark Holdings (OTCQX: ZEST) have filed a complaint against Walmart, seeking US$2 billion in damages.

The lawsuit, filed in the U.S. District Court for the Eastern District of Arkansas, is for "violation of the Arkansas Trade Secrets Act, violation of the federal Defend Trade Secrets Act, unfair competition, unjust enrichment, breach of contract, breach of the covenant of good faith and fair dealing, conversion and fraud."

Zest Labs developed Zest Fresh, a technological solution that reduces food waste by tracking produce’s freshness along the supply chain in real-time and routing pallets accordingly

The company's CEO Peter Mehring said that Zest Labs had engaged with Walmart starting in 2015 to demonstrate the value of Zest Fresh.

"During this time, Zest Labs’ proprietary information and trade secrets were shared with Walmart, including members of Walmart’s executive leadership team," he said.

"On March 1, 2018 when Walmart announced its Eden solution, we were surprised and concerned by how similar the description was to Zest Fresh.

"This concern led to the action we have taken today, which was to file a lawsuit with the federal district court in Arkansas claiming that Walmart has violated the Arkansas Trade Secrets Act and the federal Defend Trade Secrets Act."

He added: "We believe strongly in the need to protect our intellectual property, recognizing the importance of preserving the value to our shareholders and customers."

"We are asking the court for over $2 billion in damages, based in part on Walmart’s claim in their March 1, 2018 announcement that Eden will provide that measure of benefit to Walmart over the next five years."