Doug McMillon steps down as Walmart CEO; John Farner named as successor
Doug McMillon will retire as Walmart’s CEO in 2026, and will be replaced by John Farner, head of the company’s U.S. division.
Walmart and PepsiCo are accused in a lawsuit of participating in a decade-long “price-fixing scheme” that effectively raised the cost of Pepsi products nationwide at non-Walmart retailers and lowered prices at big-box stores.
The proposed class action lawsuit, filed Dec. 15 in the Southern District of New York, alleges that the companies had a long-term agreement that gave Walmart preferential pricing on PepsiCo products. According to the federal complaint, this created a price disparity that made Wal-Mart’s Pepsi soft drink products cheaper than the retail giant’s competitors.
The lawsuits allege that the companies violated antitrust laws (including the Sherman Antitrust Act of 1890, which prevents corporate monopolies and prohibits secret restrictions on competition) and state antitrust laws, according to filings reviewed by USA TODAY.
In a statement emailed to USA TODAY, Walmart said it is aware of the lawsuit and is committed to negotiating on behalf of its customers “to provide value and everyday low prices.”
In an emailed statement, PepsiCo said it could not comment on pending litigation but “remains committed to continuing to operate in compliance with applicable law and providing fair, competitive and non-discriminatory pricing, discounts and promotional value to all customers, regardless of size or channel.”
Here’s what you need to know about the pending lawsuits against Walmart and PepsiCo.
What do the lawsuits against Walmart and PepsiCo allege?
The complaint alleges that PepsiCo inflated the selling prices of its soft drink products “at all retail stores except Walmart, its largest customer,” and provided various financial and promotional benefits to those stores rather than to competing retailers.
Many of the allegations in the current lawsuit mirror a now-dropped federal lawsuit against PepsiCo. The Federal Trade Commission previously filed a lawsuit against PepsiCo for allegedly violating the Robinson-Patman Act, a 1936 law targeting discriminatory pricing practices, but closed the case in May 2025.
The claims made in the FTC lawsuit are also used in the current lawsuit against PepsiCo and Walmart, which alleges that Pepsi “offers promotional fees and benefits to its favorite big box store customers without making them equally available to those customers’ competitors.”
The complaint also alleges that Pepsi provided Walmart with data on competitors’ pricing and “reduced or eliminated Walmart’s promotional assistance or further increased wholesale prices when Walmart’s competitors threatened the retail prices consumers paid.” The proposed class alleges that these actions harmed consumers who purchase Pepsi products at retail stores other than Walmart.
The complaint states that the plaintiffs are seeking class action status against people across the United States who “purchased Pepsi soft drink products in retail stores from retailers other than Walmart” starting January 1, 2015.
Kate Perez covers national trends and breaking news for USA TODAY. You can reach her at kperez@usatodayco.com or on Twitter @katecperez_.
