Walmart Sued For Turning In Arizona Couple To The Cops Over 'Bathtime Photos'

Lisa and Anthony Demaree's ordeal began in 2008 after they had "bathtime photos" of their three young daughters developed at a local Walmart.

The store's employees told police they suspected the couple had taken pornographic photos of their children, who were 5, 4, and 1 1/2, according to ABC.

The Demarees lost custody of the three girls for a month before a Maricopa County Superior Cour judge ruled the photos were "taken at these children's bath time."

The couple still sued Walmart, saying the store should have told them it had an "unsuitable print policy" and would report nude images to police.

A judge sided with Walmart and dismissed the case, but the couple is appealing the decision. The 9th Circuit Court of Appeals heard the case earlier this month.

At the hearing, a lawyer for Walmart said the employees reported the photos because they were worried about the children in them, Courthouse News reported.

Here's a statement from Walmart:

"We recognize this has been emotional for everyone involved. It is a sensitive situation that we have taken seriously from the beginning. Given state law, we believe our associates acted appropriately in notifying authorities, who then decided whether to investigate, and the trial court agreed in dismissing the case. The lower court appropriately interpreted the law and we urged the Court of Appeals to affirm that decision."