A Delaware judge Friday dismissed a shareholder lawsuit against the directors of Wal-Mart Stores Inc. that alleged the directors failed to conduct a proper investigation into allegations of bribery in Mexico.
Entries in Delaware Chancery Court (8)
Shareholders accused Wal-Mart Stores Inc. in a Delaware court filing Thursday of failing to comply with a court order to produce files from an internal FCPA investigation of alleged bribery in Mexico.
The veil of secrecy that the "old" Walmart drew over bribery allegations in Mexico since 2005 is falling apart. One reason is because the "new" Walmart has taken robust compliance initiatives and is more transparent. Another reason is because the Delaware Supreme Court is forcing the world's biggest retailer to open up about the past.
The Delaware Supreme Court Wednesday affirmed a lower court order for Walmart to turn over files and documents from an internal FCPA investigation to plaintiffs in a civil shareholder suit.
Walmart argued Thursday to the Delaware Supreme Court that shareholders aren't entitled to internal documents from an FCPA investigation that might show what executives and directors knew about alleged bribes paid to officials in Mexico.
A pending case -- largely ignored by the compliance profession and the press -- brings before the courts one of the most troubling issues of the Wal-Mart investigation: Was the Wal-Mart Board of Directors misled during 2005-2012 regarding an alleged Mexican bribery scheme and subsequent cover-up? If so, was that due to intentional misconduct by some directors or senior executives reporting to the Board who either participated in or knew about the purported scheme?