Judge Dismisses Case Against Wal-Mart Over Mexico Bribery
On Monday, Walmart Stores Inc. won the dismissal of a U.S. lawsuit accusing it of defrauding shareholders in its Wal-Mart de Mexico unit by concealing its suspected bribery of public officials in Mexico. Reports say Judge Katherine Polk Failla in Manhattan said holders of Wal-Mex's American depository shares can not pursue claims that Wal-Mex's former Chairman Ernesto Vega and Chief Executive Scot Rank knew or were reckless in not knowing about the bribery allegations. The lawsuit is one of several targeting Wal-Mart after The New York Times in April 2012 reported that the Bentonville, Arkansas-based retailer bribed Mexican officials for years to speed up store openings.
Total Retail's Take: While the court case is over, I don't think this scandal is going to go away anytime soon. Reports say there are government inquiries on both sides for criminal court proceedings, a case that has cost the retailer more than $820 million, by some accounts. We'll see what the future brings for the retailer.