A federal court in Philadelphia ruled against Wal-Mart last week in a class action lawsuit brought on behalf of 125,000 employees allegedly cheated out of overtime pay. Unless Wal-Mart wins an appeal, the retail giant will have to pay $62.3 million.

That’s on top of the $78 million won by the workers last year in another class action suit against their employer. In all, more than 187,000 present and former employees will receive some portion of the two awards, according to The Wall Street Journal.

But eventually it won’t be Wal-Mart that pays; it will be Wal-Mart’s millions of customers who will face higher prices for goods and services. Higher prices can mean fewer customers, which in turn can result in lost jobs.

Wal-Mart’s class action ills aren’t limited to Pennsylvania. Similar class action suits are pending in California, Minnesota, New Jersey and other states. Wal-Mart settled out of court on a Colorado suit, agreeing to a $50 million settlement.

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Whenever a company settles out of court or loses in a verdict, the resulting costs are felt throughout the economy. During a forum hosted by the Manhattan Institute and quoting a 2003 report from the President’s Council of Economic Advisors, Chrysler general counsel Steve Hantler described the magnitude of the costs:

“Incredibly, what Americans spend on lawsuits could pay for all the following government programs combined: ‘Education, training, and employment; general science; space and technology; conservation and land management; pollution control and abatement; disaster relief and insurance; community development; Federal law enforcement and administration of justice; and unemployment compensation.’”

Hantler continued:

“The cost of lawsuits is far more than the amount of revenue collected from the corporate income tax. It is ‘far more than enough money to solve Social Security’s long-term financing crisis.’ For an American family of average income, tort costs could pay for more than three months of groceries, six months of utility payments, or eight months of health care costs.”

Sometimes the costs associated with out-of-control liabilities suits are felt even more directly by families and individuals. Earlier this week, the Orlando Sentinel reported that the family of a year-old boy who almost drowned is being sued by one of the police officers summoned to the scene by 911.

Sgt. Andrea Eichorn is suing the Cosmillo family, claiming it was negligent in allowing a puddle of water on the floor of their home when the officer arrived. Eichorn claims she suffered a broken knee in a fall caused by the puddle.

The baby boy survived the incident, which occurred in the family’s backyard pool, but he  has permanent disabilities caused by severe brain injuries, including being unable to speak, talk or walk. He requires 24-hour care and lives in a nursing home where he is fed through a tube, according to the Sentinel.

“The loss we’ve suffered, and she’s seeking money? Of course there’s going to be water in the house. He was sopping wet when we brought him in,” Richard Cosmillo, the baby boy’s grandfather, told the Sentinel.

Eichorn’s insurance covered her medical bills and provided disability checks. Her attorney, David Heil, told the Sentinel that those benefits were insufficient to compensate Eichorn, so she filed suit against the Cosmillo family for an unspecified amount.

“It’s a situation where the Cosmillos have caused these problems, brought them on themselves, then tried to play the victim,” Heil told the Sentinel.

"Lawyers Gone Wild" is a series of special reports by The Examiner looking at the cost and consequences of class action lawsuit abuse in the United States. Read the latest articles in the series.