Pension Fund Sues Wal-Mart Over Bribery Scandal

The nation's second largest public pension fund is suing Wal-Mart for breaching its fiduciary duty in connection with allegations that the retailer's Mexico subsidiary engaged in a bribery scheme and the company failed to properly investigate and disclose the matter. The California State Teachers' Retirement System (CalSTRS) filed a derivative action against Wal-Mart in the Court of Chancery in Wilmington, Del., where the retailer is incorporated. The suit claims that Wal-Mart's top management and directors were alerted to evidence that Walmart de Mexico executives were involved in the payment of bribes to expedite the expansion of Wal-Mart stores in Mexico.