A Story in The New York Times revealed that Walmart executives engaged in massive bribery and corruption actions in order to expand their business in Mexico. The story stated that the executives ended the investigation before it could be reported to United States and Mexican authorities.
Under the Foreign Corrupt Practices Act, it is illegal for American companies to bribe officials of other governments. Mexican government agencies and the U.S. Securities and Exchange Commission are investigating the bribery charges.
In response to the New York Times story, the price of Walmart stock went down and the New York City pension fund, with 4.7 million shares of the stock, said it would vote against five Walmart directors at the annual shareholders meeting in May.
Now, the California State Teachers’ Retirement System is suing Walmart executives and board members for changes in the way the company is managed, calling for more independent directors “who will set the right tone from the top.”
The state treasurer said, “This is a classic case of corruption and coverup. The victims include Walmart shareholders and employees.” He further stated that the company had to be compensated by the people who committed the crimes.