Pension funds seek Wal-Mart redress
Source: Agencies |
June 13, 2012, Wednesday
|
Print Edition
Print Edition
A GROUP of New York City pension funds is suing current and former Wal-Mart executives, saying they mishandled an alleged bribery at the world's largest retailer.
The group filed a lawsuit on Monday in court in Delaware, US on behalf of the company itself against the executives.
The goal in such cases, known as "derivative actions," is to change the way a company is run. As with other derivative actions, the plaintiffs plan to give Wal-Mart any fines or other financial damages won through the lawsuit. The pension funds own 5.6 million shares of Wal-Mart Stores Inc.
This is the latest of at least a dozen such lawsuits filed against Wal-Mart since the New York Times reported in late April that Wal-Mart's Mexican unit allegedly paid millions of dollars in bribes to win favors. The Times said executives didn't notify authorities even after Wal-Mart found evidence of the scheme.
"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," said Jon Liu, New York City Comptroller in a statement.
Dave Tovar, a Wal-Mart spokesman, also issued a statement.
"We take our responsibility to our shareholders very seriously," Tovar said. "We will review the lawsuit closely and are thoroughly investigating the issues that have been raised."
The group filed a lawsuit on Monday in court in Delaware, US on behalf of the company itself against the executives.
The goal in such cases, known as "derivative actions," is to change the way a company is run. As with other derivative actions, the plaintiffs plan to give Wal-Mart any fines or other financial damages won through the lawsuit. The pension funds own 5.6 million shares of Wal-Mart Stores Inc.
This is the latest of at least a dozen such lawsuits filed against Wal-Mart since the New York Times reported in late April that Wal-Mart's Mexican unit allegedly paid millions of dollars in bribes to win favors. The Times said executives didn't notify authorities even after Wal-Mart found evidence of the scheme.
"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," said Jon Liu, New York City Comptroller in a statement.
Dave Tovar, a Wal-Mart spokesman, also issued a statement.
"We take our responsibility to our shareholders very seriously," Tovar said. "We will review the lawsuit closely and are thoroughly investigating the issues that have been raised."
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