As a due diligence matter, prospective buyers should research growing litigation risks stemming from Heritage’s alleged violations of labor laws under Apollo’s ownership, particularly those of California Labor Code and sexual harassment.
Sexual Harassment Related Lawsuits
Currently, Heritage subsidiary Cardenas Markets faces 8 outstanding lawsuits alleging claims of sexual harassment, 5 of which were filed in 2025.
In the lawsuits, Cardenas workers allege sexual harassment, failure to prevent sexual harassment, and retaliation for reporting sexual harassment.
Case list:
- San Bernardino County Case No. CIVSB241606, Garicia v. Cardenas Markets et al. Filed 3/20/2024
- San Bernadino County Case No. CIVSB2416006, Alvarez v. Cardenas Markets et al. Filed 5/3/2024
- San Bernardino County Case No. CIVS82431480, Hernandez v. Cardenas Markets et al. Filed 10/31/2024
- Santa Clara County Case No. 25CV461110, Menera v. Cardenas Markets et al. Filed 3/14/2025
- Santa Clara County Case No. 25CV471786, Rocio Rio v. Cardenas Markets et al. Filed 7/29/2025
- Santa Clara County Case No. 25CV471784, Rocio Rio v. Cardenas Markets et al. Filed 7/29/2025
- Santa Clara County Case No. 25CV71765, Munoz v. Cardenas Markets et al. Filed 7/29/2025
- San Bernadino County Case No. CIVSB2528084, Lemus v. Cardenas Markets et al. Filed 9/25/2025
Class Action and Putative Class Action Lawsuits
Under Apollo’s ownership, Heritage’s subsidiary Cardenas Markets has settled two class action lawsuits alleging violations of the California Labor Code at a total cost of $4 million, without admitting wrongdoing.1
The allegations included pay and overtime violations, meal and rest break violations, and failure to provide seats for cashiers.
Now, the company faces three outstanding lawsuits alleging violations of break, pay and overtime provisions of California Labor Code. The company denies the allegations in all cases.
Case list:
- Los Angeles County Case No. 24PSCV01057 – Raul Gutierrez v. Cardenas Markets, filed 5/9/2024.
- Santa Clara County Case No. 24CV438614, Damares Gonzalez Menera v. Cardenas Markets, filed 5/9/2024.
- Riverside County Case No. CVRI2503737, Sanchez v. Cardenas Markets, filed 7/8/2025.
More Labor Related Lawsuits
Heritage faces several additional cases related to violations of the California Labor de that present potential risks for investors.
One case filed in September 2024 in Solano County alleges discrimination based on disability, wrongful termination, failure to pay wages, among other allegations.
One case filed in May alleges wrongful termination because of a false perception of immigration status and discrimination based on race or national origin. The company has yet to file a response.
A third case alleges wrongful termination and discrimination based on disability and failure to provide reasonable accommodation for a workplace injury. The company denies the allegations.
Dallas Jury Award
In May, 2025, a Dallas County jury ordered that Heritage’s Texas subsidiary El Rancho Supermercado pay nearly $9,500,000 for breach of contract with their shipping contractor Skyward Transportation.2
The plaintiff alleged that almost immediately after Apollo’s Heritage acquired the company, El Rancho began breaching the contract, making false claims regarding Skyward’s performance, to “invent a reason to terminate Skyward.”
According to a statement by the law firm representing the plaintiff, Skyward was replaced by companies “serving other Heritage brands.”3
Ask Heritage if there is any further risk stemming from their dealings with contractors that could lead to liability for a future owner.
- Superior Court of California, County of Alameda, CASE NO. 22CV005906 and Superior Court for the State of California, County of Riverside, Case # RIC-1905393 ↩︎
- Skyward Transportation LLC v. Mexico Foods LLC et al., No. DC-23-15759. 160th District Court of Texas. Document: Jury Verdict. 98 ↩︎
- Press Release by the law firm of Lynn Pinker Hurst & Schwegmann. “Jury Produces $10 Million Verdict Against Grocery Store Ownership” 5/23/2025. https://www.businesswire.com/news/home/20250523662424/en/Jury-Produces-%2410-Million-Verdict-Against-Grocery-Store-Ownership ↩︎
