Get your 256MB Flash drive for the low, low price of $28.83!
There are a couple of problems with this story. First, at this point Walmart, not the manufacturer, owns the product. Second, even where manufacturers enforce a price, it is in advertising/publishing the price and is usually enforced by withdrawing from an authorized retailing deal. I highly doubt that Impact has that kind of clout with Walmart. I bet Impact would do just about anything to keep Walmart as a customer, if Impact even exists anymore. And Impact is not going to blow it over 10 flash drives in some store in New York that they sold to Walmart a very long time ago. In other words, I believe that the employee in the story has been badly misinformed at the least.
I bet these USB flash drives will be marked down for clearance pretty quickly now, since I'm sure that Wally world has people scouring the Web for these kinds of stories and doing damage control. In fact, maybe these won't even go on clearance, but will be found in the recycle bin. The only possible use for one of these is if someone wants to do a little hardware hacking for some reason. They don't give away USB connectors, you know.