{"id":29207,"date":"2017-05-12T06:51:40","date_gmt":"2017-05-12T06:51:40","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=29207"},"modified":"2017-05-12T06:51:40","modified_gmt":"2017-05-12T06:51:40","slug":"wal-mart-ceo-questioned-u-s-lawsuit-mexican-bribery","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/wal-mart-ceo-questioned-u-s-lawsuit-mexican-bribery.html","title":{"rendered":"Wal-Mart CEO to be questioned in U.S. lawsuit over Mexican bribery"},"content":{"rendered":"

\n\tWal-Mart CEO to be questioned in U.S. lawsuit over Mexican bribery<\/span><\/span><\/strong><\/span>
\n<\/h2>\n

\n\tA federal judge on Thursday ordered Wal-Mart Stores Inc Chief Executive Douglas McMillon to submit to questioning in a lawsuit by shareholders hoping to learn what he knows about suspected bribery by the world's largest retailer in Mexico.<\/span><\/span><\/span>\n<\/p>\n

\n\tU.S. District Judge Susan Hickey in Fayetteville, Arkansas, said McMillon's "direct and personal involvement" in matters underlying a class-action lawsuit justified requiring him to sit for a deposition by the shareholders' lawyers.<\/span><\/span><\/span>\n<\/p>\n

\n\tMcMillon had been president of Wal-Mart International during a period when shareholders led by a Michigan pension fund said the retailer concealed suspected bribery by its Wal-Mart de Mexico unit to government officials, to speed up store openings.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe Bentonville, Arkansas-based retailer had argued that McMillon lacked the "unique or special knowledge" to justify burdening him with a deposition.<\/span><\/span><\/span>\n<\/p>\n

\n\tBut the judge said McMillon, who became chief executive in February 2014, took part in several meetings, saw dozens of communications, and had certified many public statements by Wal-Mart about the alleged bribery.<\/span><\/span><\/span>\n<\/p>\n

\n\t"It appears to the court that McMillon has unique knowledge of relevant issues in this litigation that only he can explain," Hickey wrote. A deposition could last four hours, she added.<\/span><\/span><\/span>\n<\/p>\n

\n\tWal-Mart spokesman Randy Hargrove said: "We are reviewing the order and contemplating our next steps."<\/span><\/span><\/span>\n<\/p>\n

\n\tJason Forge, a lawyer for the lead plaintiff City of Pontiac General Employees' Retirement System, said in an email: "We're determined to try this case in court."<\/span><\/span><\/span>\n<\/p>\n

\n\tWal-Mart's market value slid $17 billion over three days in April 2012 after the New York Times reported the alleged bribery and said it had been first discovered internally in 2005.<\/span><\/span><\/span>\n<\/p>\n

\n\tShareholders accused Wal-Mart and Mike Duke, who preceded McMillon as chief executive, of downplaying the scheme even after learning about the Times' investigation.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe class period runs from Dec. 8, 2011 to April 20, 2012.<\/span><\/span><\/span>\n<\/p>\n

\n\tEarlier this week, Bloomberg News said Wal-Mart may pay about $300 million to settle a U.S. government probe into suspected bribery in Mexico, India and China, citing people familiar with the matter.<\/span><\/span><\/span>\n<\/p>\n

\n\tA $300 million payment would represent about one week of profit for Wal-Mart.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe case is City of Pontiac General Employees' Retirement System v. Wal-Mart Stores Inc et al, U.S. District Court, Western District of Arkansas, No. 12-05162.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-walmart-mexico-ceo-idUSKBN1872VF<\/span><\/span><\/span><\/p>\n

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