ILNews

Indiana pension fund attorneys to serve as lead co-counsel in Wal-Mart bribery suit

Marilyn Odendahl
September 10, 2012
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The Indiana Electrical Workers Pension Trust Fund has been named as co-lead plaintiff in a lawsuit against the board of directors of retail giant Wal-Mart.

According to attorney Stuart Grant, the Indiana pension fund has not joined the lawsuit but has filed a separate suit against the retailer asking for company books and records regarding the investigation of a bribery scandal.  

Yet, Delaware Chancery Court Judge Leo Strine made the Indiana union co-lead plaintiff because, in his opinion, the Indiana fund is taking the proper strategy in conducting its own review of company documents rather than relying on media reports.

The other co-lead plaintiffs are the California State Teachers Retirement System and the New York City Employees’ Retirement System.

The lawsuits stem from allegations, reported by The New York Times, that Wal-Mart employees bribed Mexican officials to get building permits which helped the company’s growth in the country.

Grant explained the pension funds are not suing Wal-Mart. The funds want to ensure that any fines or criminal liability be born solely by the directors and not by the company because the board of directors appears to have squashed an investigation into the bribery scandal.

“We’re not trying to hurt Wal-Mart,” Grant said.

The IBEW (International Brotherhood of Electrical Workers) has a good relationship with Wal-Mart, he continued, noting the union members shop at the store, are stockholders and want the company to prosper which will, in turn, benefit them.

The federal government is also investigating the bribery incident to see if Wal-Mart violated the U.S. Foreign Corrupt Practices Act of 1977.

In addition, the Indiana fund is suing to force Wal-Mart to turn over internal company reports regarding the investigation into the allegations. According to the Indianapolis Star, the attorneys for the electrical workers received 3,474 documents from the retailer but nearly half were redacted. In a twist, an anonymous informant mailed the plaintiff a slew of papers that the Indiana pension fund lawyers say supports the allegations in the Times’ story.

Whether the Indiana pension fund will join the suit against the board depends on what the internal company documents reveal, Grant said. However, he did indicate there is a strong possibility the IBEW will become a party to the lawsuit.  

“Based on what I’ve seen, it’s ugly for these directors,” he said.

 

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  1. Hail to our Constitutional Law Expert in the Executive Office! “What you’re not paying attention to is the fact that I just took an action to change the law,” Obama said.

  2. What is this, the Ind Supreme Court thinking that there is a separation of powers and limited enumerated powers as delegated by a dusty old document? Such eighteen century thinking, so rare and unwanted by the elites in this modern age. Dictate to us, dictate over us, the massess are chanting! George Soros agrees. Time to change with times Ind Supreme Court, says all President Snows. Rule by executive decree is the new black.

  3. I made the same argument before a commission of the Indiana Supreme Court and then to the fedeal district and federal appellate courts. Fell flat. So very glad to read that some judges still beleive that evidentiary foundations matter.

  4. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  5. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

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