The California State Teachers’ Retirement System (CalSTRS), one of the largest U.S. pension plans, is suing Wal-Mart’s board and several current and former executives and directors,
the
New York Times
reported.
The suit accuses them of breaching the company’s fiduciary duty in connection with a bribery scandal at the company’s Mexican subsidiary. An earlier
Times
article reported evidence that the Mexican unit bribed officials in Mexico and that some company executives ignored the bribery accusations.
The suit was filed on behalf of Wal-Mart itself against the company leaders, which the pension plan contends have failed in their duties to the company, the
Times
report noted. CalSTRS owns only less than 1% of the company — about 5.3 million shares, worth about $313 million — the article said.
The suit, known as a derivative suit, asks that damages be awarded to the company, and that the company improve its corporate governance and internal procedures, the
Times
article said.
A spokesman for Wal-Mart told the
Times
that the company is “reviewing the lawsuit closely and … thoroughly investigating the issues that have been raised.”
The article said the lawsuit names all of Wal-Mart’s current directors and several other current and former officials, including CEO Michael T. Duke, a board member; former CEO H. Lee Scott Jr., also a board member; vice chairman Eduardo Castro Wright; and chief administrative officer Thomas A. Mars. (Source:
New York Times,
May 3, 2012.)
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