JD Journal » Wal-Mart

Wal-Mart in Compliance with Foreign Corrupt Practices Act?

rebneely — Fri, 09 Dec 2011 12:01:02 +0000

The best defense is a good offense? That’s what one may wonder after Wal-Mart Stores Inc. announced it is launching its own investigation into whether its policies, procedures and internal controls are in compliance with the Foreign Corrupt Practices Act; the legislation deals with anti-bribery.

The retail giant disclosed the investigation to the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC). The company has also enlisted the assistance of outside counsel and advisers to implement remedial measures, according to the filing.

Wal-Mart was quoted as having said in the filing, per the December 8^th law360.com article, “Wal-Mart Launches FCPA Compliance Probe”: “We cannot reasonably estimate the potential liability, if any, related to these matters. However, based on the facts currently known, we do not believe that these matters will have a material adverse effect on our business, financial condition, results of operations or cash flows.”

Wal-Mart spokesman David Tovar explained, per the article, that the company had, on a regular basis, instituted changes during the past few years to ensure its FCPA compliance programs were more effective. In coordination with that effort, Wal-Mart undertook a global review of its anti-corruption programs.

Tovar was quoted as saying: “We believe this is the right thing to do, in keeping with Wal-Mart’s core values and previous practices.” He also explained the investigation concentrates on “discrete incidents in specific areas”; as well, the company will disclose its findings to federal authorities.

The retail giant operates nearly 9,900 units in nearly 30 countries, including the U.S., Canada, Brazil, China, India, South Africa and Japan. In 2010, the company reported fiscal year 2010 sales of $405 billion, and it employs over 2 million people worldwide.

In recent years, amid the push for financial reform, the housing crisis and the economic downturn, the federal government has moved aggressively to put an end to foreign bribery, and that includes the executives, employees and third parties who allegedly make it possible.

Examples of companies who’ve faced backlash recently include pharmaceutical giant Pfizer Inc… The pharma giant paid over $60 million to settle investigations into whether it used bribes to secure business in foreign countries, according to The Wall Street Journal.

New York-based Pfizer said it had reached agreements in principle with the DOJ and SEC over “potentially improper payments” made by Pfizer and Wyeth Ltd. subsidiaries in connection with certain overseas sales activities.

As well, earlier in 2011, Johnson & Johnson paid U.S. regulators $70 million to settle bribery and kickbacks allegations in connection with overseas business.

The FCPA continues to have a profound impact on the way U.S. firms undertake business in at home and abroad. In 1998, the United States Congress and 33 other countries acted against the bribery of foreign officials, essentially government officials in an attempt to reduce corruption and money laundering through the global financial system. Corrupt political officials and those in high army office were targeted with a view to preventing government officials from exploiting their positions to gain unfair commercial advantage.

Wal-Mart Sex-discrimination Case Headed to the Supreme Court

aostler — Mon, 21 Mar 2011 19:19:02 +0000

In 2001, a lawsuit was launched against Wal-Mart by Brad Seligman, civil rights attorney. Betty Dukes, named as the lead plaintiff, worked as a cashier in a Pittsburg, CA Wal-Mart, and said she had problems with a female supervisor. She claimed that even after several years of working there, she was denied chances to advance, even though she received good reviews on her performance. The suit’s goal is to cover every woman that worked at Wal-Mart or Sam’s Club’s stores since December 1998. If this holds true, the class for this suit will exceed one million women.

In 2004, it was ruled by a federal district judge that this could go forward as a class action suit, but now it is going to a higher court to receive a new ruling. The suit is suing for billions of dollars in damages, aiming to give back pay for over a million women who worked or work there, claiming that Wal-Mart has a “corporate culture” which fostered discrimination companywide.

The Supreme Court is set to decide whether the allegations of these workers are enough to justify a class-action lawsuit to represent more than a million female Wal-Mart employees. The case is set for argument on March 29, although it has been 12 years since they last reviewed the standards which certify a class action suit.

Sworn complaints have been made by more than 100 employees of the retail giant that Wal-Mart “Local managers made sexist decisions about promotions and pay, and top officials did nothing to stop them,” according to the Pittsburgh Post-Gazette.

Advocates for the employees feel that if Wal-Mart won, it would crush any efforts to make companies that are biased change their ways. On the other hand, corporate supporters say that if a class action suit is allowed in a ruling by the Supreme Court, it could open up a host of antitrust, employment, and product-liability suits.

Suit Against Wal-Mart Largest Private Gender Bias Case in U.S. History

joshua — Tue, 27 Apr 2010 14:17:15 +0000

According to today’s article at Bloomberg Businessweek , yesterday’s 6-5 decision by the U.S. Court of Appeals in San Francisco will allow women who’ve worked at Wal-Mart since 2001 to be part of a single class-action lawsuit over discrimination claims, said Brad Seligman, an attorney for the workers. Potential plaintiffs exceed 1 million, he said.

The case is the largest private gender-bias case in U.S. history.

Wal-Mart is accused of paying women on salary, and those earning hourly wages, less than men for the same jobs and giving them fewer promotions. Six women filed the lawsuit in 2001.

Ted Boutrous, a partner at Gibson Dunn & Crutcher LLP, the firm representing Wal-Mart, said the company will ask the U.S. Supreme Court to review the ruling. If it’s not reversed, the decision would lead to “massive litigation” against U.S. companies, Boutrous said. “We’ve always believed that this case presents issues that go far beyond the company,” he added.

Gibson, Dunn & Crutcher is a global law firm, founded in Los Angeles in 1890. It is one of the most prestigious and selective in the nation, and ranks among the most successful firms globally. The firm has nearly 1000 attorneys and over 2000 staff located in 15 offices around the world, including North and South America, Europe, Asia, and the Middle East. Gibson Dunn clients include some of the world’s largest multinational corporations in all major industries, leading government entities, commercial and investment banks, start-up ventures, emerging growth businesses, partnerships and individuals.

In 2008, Wal-Mart Stores, Inc. was the world’s largest public corporation by revenue, according to the Fortune Global 500 for that year. It is the largest private employer and the largest grocery retailer in the United States.

In-House and Law Firm Lawyers Form Diversity Council

Erik Even — Thu, 07 May 2009 19:14:02 +0000

Senior legal executives from The Coca-Cola Company, Microsoft, Wal-Mart and 11 more Fortune 500 companies, with the managing partners of O’Melveny & Myers, DLA Piper, Debevoise and other leading law firms, have announced the formation of the Leadership Council on Legal Diversity.

The new organization of chief legal officers and law firm managing partners is dedicated to improving diversity in the legal profession.

The LCLD evolved from the 2008 Call to Action Summit, a gathering of 125 senior legal professionals, consisting solely of general counsels from Fortune 500 companies and managing partners of the nation’s top law firms, who discussed real solutions to the substantial diversity gap within the legal profession.

Among its first orders of business, the LCLD is assessing the progress made by four working groups established during the 2008 Call to Action Summit. The groups include Law Firm Call to Action; Strategies for Law Firm and Corporate Partnerships; Goals to Measure Success; and Recruitment, Retention and Advancement.

Podesta Group Adds Lobbyists

Erik Even — Fri, 10 Apr 2009 17:14:13 +0000

The Podesta Group has added at least six principals this year.

Podesta saw a 44% rise in gross lobbying revenue from 2007 to 2008.

So far this year, the firm has filed 18 registrations for new federal lobbying clients, including Deloitte, Michelin North America, and Sallie Mae. The firm’s existing clients include Google, Wal-Mart, and Reed Elsevier, the company that owns Lexis-Nexis.

The new additions include Teal Baker, an official in President Barack Obama’s presidential campaign, who returns to Podesta after leaving in 2007.

Peggy Binzel is a former legislative director for then-US Representative Jack Fields of Texas.

Beth Inadomi returns to Podesta; she is a former counsel on the Senate Commerce Committee.

Aranthan Jones II worked for then-US Representative William Jefferson, Louisiana Democrat.

Andy Lewin worked for US Representative Dennis Moore, Democrat of Kansas, and then-US Representative Max Sandlin, Democrat of Texas.

Bob Taylor was deputy assistant secretary of defense for Senate affairs.

The Podesta Group is a lobbying and public affairs firm based in Washington, DC. It was founded in 1988 by brothers John Podesta and Tony Podesta, and has previously been known as Podesta Associates and PodestaMattoon.