Pension Fund Sues Walmart Directors Over Mexican Bribery

Suit: Directors, execs should compensate firm for 'gross misconduct'
By Rob Quinn,  Newser Staff
Posted May 4, 2012 3:48 AM CDT
Walmart execs allegedly bribed Mexican officials to speed up the opening of new stores.   (Getty Images)

(Newser) – A major Walmart shareholder is suing current and former directors and execs on the company's behalf over the Mexican bribery scandal. The California State Teachers' Retirement System —America's second-largest public pension fund—wants the directors and executives responsible for Walmart's Mexican unit to reimburse the company for damages suffered as a result of the alleged scheme to bribe Mexican officials, Bloomberg reports.

The lawsuit aims "to remedy the damages sustained by Walmart as a result of alleged gross misconduct by Walmart's executive officers and directors," the fund's CEO said in a statement. The focus of the action "is corporate governance reform to ensure that similar misconduct is not repeated in the future," he said. "We need truly independent directors who will set the right tone from the top." Billions of dollars have been wiped off Walmart's value since the scandal surfaced last month, Reuters notes.

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