Shares in U.S. retail giant Walmart (WMT) fell today after faulty water bottles caused two people to go blind.
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Ejecting Lids
Walmart said it is recalling about 850,000 stainless steel water bottles because the lid can “forcefully eject” and unexpectedly strike consumers. Sadly, this has resulted in permanent vision loss for two people to date.
The recall covers Walmart’s “Ozark Trail 64 oz Stainless Steel Insulated Water Bottles,” which have been sold at the chain’s stores across the country since 2017.
According to the U.S. Consumer Product Safety Commission (CPSC) these products pose “serious impact and laceration hazards.”
The Commission said that when someone attempts to open the bottles “after food, carbonated beverages or perishable beverages, such as juice or milk, are stored inside over time,” the lid can eject forcefully.
It is reported that Walmart has received three reports of consumers who were injured after being struck in the face by these lids when opening their bottles. And two of those people “suffered permanent vision loss after being struck in the eye,” the CPSC said.
This matters to Walmart because of the financial and reputational hit by selling products which can cause danger to consumers. It is why it is a key risk when investing in a retail stock.
Lead Poisoning
The message to consumers is clear. They are being urged to stop using the bottles and get in touch with Walmart for a full refund. Shoppers can also bring the products to their local Walmart store.
Walmart was also hit by another recall, this time impacting children’s bikes, due to the risk of death or injury from lead poisoning.
It said it was recalling 200 SPPTTY Kids 14- and 18-inch bicycles. It warned that components of the children’s bicycles contain levels of lead that exceed the federal lead content ban, posing a lead poisoning hazard to children. In addition, the black paint on the bicycle pumps contains lead that exceeds the federal lead paint ban. Lead is toxic if ingested by young children and can cause adverse health issues.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 29 Buy ratings. Its highest price target is $120. WMT stock’s consensus price target is $111.25 implying a 17.39% upside.
