This past weekend's report of bribery by the retailer's Mexican subsidiary is likely to be only the beginning of the bad news for the company....
http://www.marketwatch.com/story/waiting-for-wal-marts-other-shoe-to-drop-2012-04-24
http://www.marketwatch.com/story/waiting-for-wal-marts-other-shoe-to-drop-2012-04-24
7/5 2012 07:41 apis 0
56643 CALSTRS SUES WAL-MART OVER ALLEGED BRIBERY IN MEXICO
20:54
DOW JONES NEWSWIRES
The California State Teachers Retirement System has filed a lawsuit against
Wal-Mart Stores Inc. (WMT) over allegations of bribery in the retailers Mexico
operations.
CalSTRS, which holds more than 5.3 million Wal-Mart shares, alleged that
senior Wal-Mart officials engaged in large opportunistic stock sales before an
article in the New York Times reported the charges of corporate corruption last
month. The Wal-Mart holdings account for roughly 0.4% of CalSTRS equities
portfolio.
By utilizing the derivative action, CalSTRS is seeking to remedy the damages
sustained by Wal-Mart as a result of alleged gross misconduct by Wal-Marts
executive officers and directors, said CalSTRS Chief Executive Jack Ehnes.
The focus of this action, unprecedented in CalSTRS history, is corporate
governance reform to ensure that similar misconduct is not repeated in the
future.
Last month, Wal-Mart acknowledged that it is investigating its operations in
Mexico for possible violations of the U.S law that prohibits bribery overseas.
The company confirmed that the probe involved Mexico, one of its largest
markets, after the New York Times published a lengthy investigative article
that contended the company learned of allegations of widespread bribery by
its workers in the country in 2005--and that top executives subsequently
covered them up.
The alleged bribery involved hundreds of illicit payments totaling more than
$24 million to help obtain permits for new stores in Mexico, where the
companys Wal-Mart de Mexico (WALMEX.MX, WMMVY) arm has become the nations
largest retailer and top private-sector employer, the newspaper reported,
citing numerous internal emails and records it obtained.
20:54
DOW JONES NEWSWIRES
The California State Teachers Retirement System has filed a lawsuit against
Wal-Mart Stores Inc. (WMT) over allegations of bribery in the retailers Mexico
operations.
CalSTRS, which holds more than 5.3 million Wal-Mart shares, alleged that
senior Wal-Mart officials engaged in large opportunistic stock sales before an
article in the New York Times reported the charges of corporate corruption last
month. The Wal-Mart holdings account for roughly 0.4% of CalSTRS equities
portfolio.
By utilizing the derivative action, CalSTRS is seeking to remedy the damages
sustained by Wal-Mart as a result of alleged gross misconduct by Wal-Marts
executive officers and directors, said CalSTRS Chief Executive Jack Ehnes.
The focus of this action, unprecedented in CalSTRS history, is corporate
governance reform to ensure that similar misconduct is not repeated in the
future.
Last month, Wal-Mart acknowledged that it is investigating its operations in
Mexico for possible violations of the U.S law that prohibits bribery overseas.
The company confirmed that the probe involved Mexico, one of its largest
markets, after the New York Times published a lengthy investigative article
that contended the company learned of allegations of widespread bribery by
its workers in the country in 2005--and that top executives subsequently
covered them up.
The alleged bribery involved hundreds of illicit payments totaling more than
$24 million to help obtain permits for new stores in Mexico, where the
companys Wal-Mart de Mexico (WALMEX.MX, WMMVY) arm has become the nations
largest retailer and top private-sector employer, the newspaper reported,
citing numerous internal emails and records it obtained.
