SEC: Walmart’s Reporting Lacks Transparency

Posted on August 7, 2012 by jway

The Securities and Exchange Commission (SEC) announced today that Walmart’s filings with the agency did not sufficiently explain the potential impact that the legal proceedings facing Walmart could have on the company. Walmart has tried to downplay the losses it could potentially face related to the alleged bribery and cover-up scandal. According to Reuters, the SEC released the letters exchanged between the agency and Walmart on Monday.

After a routine review of the filings, “the SEC asked the world’s largest retailer to provide greater detail about the outcome of legal proceedings, such as the range of a possible loss from litigation. If no range could be provided, the SEC asked that Walmart provide a reason why such an estimate could not be given.”

In response, Walmart agreed to change its most recent disclosure. The company eliminated a line about the unpredictability of the outcome of the legal proceedings. Now the filings will instead read: “Management does not believe any possible loss or the range of any possible loss that may be incurred in connection with this matter will be material to the Company’s financial condition or results of operations.”

Despite Walmart’s apparent denial that investigations of alleged FCPA violations might lead to “material” losses for the company, CityWire reports that “analysts agree fines related the Mexican bribery probe could be steep.”

In its review, the SEC also found Walmart’s reporting on cyber-security lacking. Reuters’ report goes on to state that “the SEC asked if any security breaches through cyber attacks have occurred in the past, and asked the retailer to expand its risk factor statement in the future to disclose such information. Walmart said computer hackers make numerous attempts to breach the company’s information systems each year,” though none have been successful in accessing workers’, employees’, or suppliers’ personal information.

This post was written by Rebecca Cassler.

Anonymous

Giant corporations ignoring environmental laws, lying, and buying politicians and elections an are not your enemy. Teacher’s unions are your enemy. – from your friends at the GOP
- Anonymous
  
  Unions are the ones who buy politicians. The teachers unions have brought the best education system in the world down to 25th. Those are the results.
- Anonymous
  
  You want to know who’s really buying politicians? Charles and David Koch that’s who are buying politicians AND elections. Educate yourself:
  
  http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer
  
  http://www.guardian.co.uk/commentisfree/cifamerica/2011/apr/08/koch-brothers-lobbying
  
  http://www.westernprogressive.com/2012/02/koch-brothers-want-to-buy-the-election-for-gop.html
  
  http://markmaynard.com/2012/06/koch-brothers-with-citizens-united-behind-them-announce-intention-to-buy-election/
  
  Be very afraid of the Koch Brothers.
  - Anonymous
    
    Quoting a bunch of left wing rags does not make something true. It just indicates where you get your information.
Anonymous

Romney will never be able to relate to us because he is not like us:
We have a boat. Romney has a yacht.
We have a garage door opener. Romney has a car elevator.
We have a home. Romney has seven (7) mansions.
We have a mortgage. Romney owns the mortgage.
We have our money in a US bank. Romney banks offshore.
We have a $37,000 IRA. Romney has $110 million IRA.
We struggle to survive. Romney flaunts his wealth.
We help America. Romney helps himself and his buddies.
We lost the American dream. Romney helped kill the American dream.

Vote Main Street NOT Wall Street!

SEC: Walmart’s Reporting Lacks Transparency

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