California State Teachers' Retirement Systems, a California based pension fund has sued Wal-Mart Inc over the mishandling of allegations that executives were aware of the bribery case in Wal-Mart de Mexico but chose to cover it up, reports said. The fund filed a derivative lawsuit in Delaware.
"By utilizing the derivative action, CalSTRS is seeking to remedy the damages sustained by Wal-Mart as a result of alleged gross misconduct by Wal-Mart's executive officers and directors," CalSTRS Chief Executive Officer Jack Ehnes reportedly said in the statement.
Last month, reports surfaced that Wal-Mart’s biggest unit, Wal-Mart de Mexico, had resorted to bribery to grow and expand its business.
According to reports, in 2005, top executives at Wal-Mart, including Chief Executive Michael Duke, former CEO Lee Scott and former CEO Eduardo Castro-Wright, heard allegations of bribery of Mexican officials, which possibly went up to $24 million in several payments, but didn’t discipline leaders at Wal-Mart de Mexico or notify U.S. or Mexican law-enforcement officials.