Legal News

Wal-Mart Sued by New York City Pension Funds
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Monday, the New York City’s pension funds filed a derivative lawsuit against Wal-Mart Stores Inc on reported allegations of bribery in Mexico and a possible cover-up by Wal-Mart officials. The lawsuit has been filed in the Delaware Chancery Court and alleges that the officers and board of directors of Wal-Mart breached their fiduciary duty to the company and to shareholders.

The issue was first exposed by the New York Times in a report on April 21. The report mentioned that the management of Walmex or Wal-Mart de Mexico had arranged bribes amounting to $24 million to spur its growth over the last decade, and that the top officials at Wal-Mart had tried to cover up the misdeeds.

New York City Comptroller John C. Liu issued a statement observing, “Rooting out the directors and executives responsible for the current crisis would be a first step, but Wal-Mart also needs corporate governance reforms and an independent board that will protect outside shareholders and safeguard against another breakdown of internal controls.”

  
What
Where


At least 11 derivative suits against Wal-Mart have already been filed over the matter, including one by the California State Teachers’ Retirement System. The City of Pontiac General Employees Retirement System in Tennessee has filed a securities lawsuit over the same causes against Wal-Mart.

Wal-Mart spokesman David Tovar told the media, “We take our responsibility to our shareholders very seriously. We will review the lawsuit closely and are thoroughly investigating the issues that have been raised … It is also important to remember that the filing of a lawsuit does not indicate the ultimate merits of the case or how the case will be resolved.”

The allegations of bribery are also being investigated by the U.S. Department of Justice, the U.S. Securities and Exchange Commission and a number of government agencies in Mexico. The Wal-Mart spokesman told the media that the company is conducting its own internal investigation, but it was too early to make conclusive comments.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The New York City funds held $5.6 million in Wal-Mart shares as of March 31, and the New York City Comptroller’s Office had voted against certain board members in Wal-Mart’s recent election.





 

RELEVANT JOBS

Family law attorney Westlake Village

USA-CA-Westlake Village

ZFLG is a boutique family law firm serving LA and Ventura Counties. We want to hire an experien...

Apply now

Personal Injury Attorney

USA-PA-Philadelphia

CAREER OPPORTUNITY   The Quinn Law Group is looking for an exceptional candidate to join ...

Apply now

Criminal Law Attorney

USA-MO-Springfield

AV rated criminal defense law firm seeking full time attorney with at least 1-3 years of experience ...

Apply now

Litigation Paralegal

USA-OR-Portland

Litigation Paralegal Job Description   Mid-sized downtown Portland firm has an immediate ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mergers and Acquisitions Associate Attorney

USA-CA-San Diego

San Diego office of a BCG Attorney Search top ranked law firm seeks Mergers and Acquisitions Associa...

Apply Now

Senior Wealth Management Group Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks Senior Wealth Management Group Associate Attorney with 9 years ...

Apply Now

Bankruptcy Associate Attorney

USA-CA-Los Angeles

Los Angeles office of a BCG Attorney Search top ranked law firm seeks Bankruptcy Associate Attorney ...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top