Wal-Mart Beats Back Suits Against Directors Over Bribes

Source: Bloomberg


By Jef Feeley
January 25, 2018, 2:48 PM CST Updated on January 25, 2018, 4:33 PM CST
- Delaware Supreme Court upholds dismissal of funds’ cases
- Investors blamed board for failing to ferret out bribes



Wal-Mart Stores Inc.’s lengthy legal fight over lawsuits claiming directors turned a blind eye to bribes paid to speed construction of Mexican stores came to an end after Delaware’s top court upheld a ruling throwing out the cases.

A judge correctly dismissed suits filed by a dozen pension funds blaming directors for failing to properly investigate the bribery reports and covering them up, the Delaware Supreme Court said Thursday. The Delaware judge was obligated to honor an Arkansas judge’s finding that the cases wouldn’t fly, the justices said.

“This is an important decision for Delaware corporate law and shareholder derivative actions, and provides greater clarity” for companies incorporated in the state, said Randy Hargrove, a Wal-Mart spokesman.

The Supreme Court ruling resolves the last civil claims against Wal-Mart’s board stemming from the bribery allegations, first reported in 2012 by the New York Times. At least $24 million in “suspect payments” were made, the Times said, citing internal files. Company officials in the U.S. and Mexico limited the investigation into the payoffs and hid the plot for more than seven years, the paper said.

Read more: https://www.bloomberg.com/news/articles/2018-01-25/wal-mart-investors-lose-bid-to-revive-mexican-bribery-claims