Wal-Mart sued by second-largest pension plan in the US over Mexico bribery allegations
Source: Global Post
Wal-Mart sued by second-largest pension plan in the US over Mexico bribery allegations
Wal-Mart has been sued by the $153 billion California State Teachers' Retirement System, which holds over 5.3 million shares of the company.
Talia Ralph
May 4, 2012 13:54
LOS ANGELES — Wal-Mart has been sued by the second-largest pension plan in the United States, the California State Teachers' Retirement System, over the retailer's alleged mishandling and cover-up of bribery in their Mexico division, Reuters reported Thursday.
The California State Teachers' Retirement System (CalSTRS), which holds over 5.3 million shares of Wal-Mart, filed their lawsuit late Thursday in state court in Delaware, the Associated Press reported.
The type of suit CalSTRS filed is called a derivative suit, in which a shareholder brings legal action on behald of a corporation against a third party, who is often an insider in the company that has failed in their duties. In this case, the lawsuit was filed on behalf of Wal-Mart itself against the company’s board and several current or former executives or board members, the New York Times reported.
CalSTRS is seeking to remedy the damages sustained by Wal-Mart as a result of alleged gross misconduct by Wal-Mart's executive officers and directors," CalSTRS Chief Executive Jack Ehnes said, the Los Angeles Times reported. "The focus of this action is corporate governance reform. We need truly independent directors who will set the right tone from the top."
Read more: http://www.globalpost.com/dispatch/news/business/120504/wal-mart-lawsuit-california-pension-plan-mexico-bribery
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