Whistleblower Documents Lead Shareholder to Sue Walmart Over Lack of Transparency
Posted on August 20, 2012 by jway
The Walmart bribery and cover-up scandal saga continues. Yet another shareholder has sued the company and its Board of Directors in relation to allegations that the company’s Mexican subsidiary paid $24 million in bribes to officials and top executives covered it up. Last Monday, the Indiana Electrical Workers Pension Trust Fund, which is owned by the International Brotherhood of Electrical Workers, filed a complaint against Walmart in order to gain access to internal documents related to the bribery allegations.
According to Reuters, the lawsuit “…said the company had made a ‘woefully deficient’ production of documents following an earlier out-of-court demand. What documents were produced were ‘so heavily redacted,’ or blacked out, they were nearly worthless, the pension fund said.”
Reuters goes on to report that, according to the IBEW’s complaint, “an unidentified whistleblower had mailed documents to the fund’s lawyers ‘substantiating numerous facts’ in the Times’ article related to bribes paid by Walmart de Mexico.”
The latest shareholder lawsuit, one of many filed by investors in relation to the bribery allegations, comes on the heels of a revelation last week that Walmart has been uncooperative with a Congressional investigation into the allegations. Lawmakers say that they have reason to believe the company may have also engaged in money laundering and tax evasion.
Walmart recently announced that it spent $34 million in expenses related to the Mexican bribery scandal in the three month period ending July 31. The company has slowed its plans for international growth. Its share of retail sales in Mexico has also declined steadily since the Mexican bribery allegations were made public in April of this year.
This post was written by Rebecca Cassler.