Wal-Mart must face U.S. class action over alleged Mexican bribery
Wal-Mart must face U.S. class action over alleged Mexican bribery
Wed Sep 21, 2016 | 7:17pm EDT
By Jonathan Stempel and Nandita Bose
Wal-Mart Stores Inc (WMT.N) must face a class-action lawsuit accusing the world's largest retailer of defrauding shareholders by concealing suspected bribery to help it expand faster in Mexico, a U.S. judge said.
In a decision on Tuesday, U.S. District Judge Susan Hickey in Fayetteville, Arkansas rejected Wal-Mart's contention that a Michigan pension fund had no standing to lead the case because it had not suffered losses on the retailer's stock.
The decision means shareholders can sue Wal-Mart and former Chief Executive Mike Duke as a group over the alleged cover-up of bribery at Wal-Mart de Mexico. This could lead to a larger payout at lower cost than if individual lawsuits were required.
Class certification "would enhance judicial economy and efficiency," given that many shareholders had small claims, and "concentrating the claims in defendants' home forum with uniform decisions is desirable," Hickey wrote.
More:
http://www.reuters.com/article/us-walmart-decision-idUSKCN11R2Z9
LBN:
http://www.democraticunderground.com/10141578587
