Report: Walmart Footing Legal Fees For More Than 30 in Bribery Probe

Reuters reported Wednesday that Bentonville-based Wal-Mart Stores Inc. is paying the legal fees for more than 30 executives involved in an ongoing investigation of bribery allegations in its foreign operations.

While that isn’t uncommon among large companies, experts told Reuters the large number of attorneys hired in the case suggests prosecutors are aggressively testing information that the company has turned over, and may be considering cases against multiple individuals.

“I’ve never heard of that many potential targets of an investigation no matter how big,” Richard Cassin told Businessworld. Cassin is an anti-corruption lawyer and author of a popular blog on the law at issue, the Foreign Corrupt Practices Act. “Those numbers suggest [the U.S. Department of Justice] is really digging deep,” he said.

In April 2012, the New York Times reported on claims of systemic bribery at Walmart’s Mexican subsidiary around 2005 and a subsequent cover-up involving some of the companies highest executives.

The article claimed Eduardo Castro-Wright, former head of Wal-Mart de Mexico, approved more than $24 million in bribes to government officials to speed up construction projects.

It also claimed executives including then-CEO Lee Scott knew of the bribery at the time and ignored it.

After the article’s publication, Walmart revealed it had already started an internal investigation into the matter. Castro-Wright retired July 1 as vice chairman.

Walmart confirmed to Businessworld that it was footing the legal bills for executives touched by the corruption probe, but the company declined to give any specifics.

Walmart spokesman David Tovar said it is not uncommon for individuals to retain counsel to advise them in such situations, according to the report.

“It is inappropriate for us or others to come to conclusions until the investigation is completed,” Tovar said.