Wal-Mart Board Sued by Fund

California pension fund says directors, execs should reimburse retailer for damages caused by alleged Mexican bribes.

Wal-Mart Stores Inc.’s board was sued by a California pension fund over its mishandling of allegations that the world’s largest retailer bribed Mexican officials to help fuel the company’s growth in the country.

Wal-Mart directors and executives responsible for overseeing the company’s Mexican unit should reimburse the Bentonville, Arkansas-based retailer for damages the chain suffered as a result of the bribery scheme, lawyers for the California State Teachers Retirement System said in a lawsuit filed yesterday in Delaware Chancery Court in Wilmington.

Whistle-Blower

Once the bribery allegations were flagged to company officials by a whistle-blower in late 2005, executives within the Mexican unit sought to cover up the payments, the pension fund said in the suit.

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