Stay current on changes and developments in corporate law with a wide variety of resources and tools.
By Michael Greene
Dec. 12 — Plaintiffs in a hotly contested books and records action against Wal-Mart Stores, Inc. Dec. 11 filed a motion for civil contempt in the Delaware Chancery Court against the megastore.
The grounds for the motion are outlined in a brief that is currently under seal, according to the motion and officials at the chancery court.
Representatives from both parties did not immediately respond to requests for comment.
On Dec. 8, Wal-Mart certified to the chancery court that it has fully complied with a July Delaware Supreme Court order requiring the company to release internal documents about what directors and officers knew about alleged bribes made by executives at its subsidiary in Mexico.
In a Dec. 8 letter to Chancellor Andre G. Bouchard, Wal-Mart included a proposed order requesting that the court close the underlying books and records action and that the consolidated derivative action proceed pursuant to a case management order entered earlier.
That same day, Bouchard directed the plaintiffs to inform him by Dec. 11 of their position and to specify what items, if any, remain open in this case.
The Delaware Supreme Court July 23 ordered Wal-Mart to hand over certain internal files that concerned what its directors knew about claims that executives paid bribes to facilitate Mexican real estate deals, in violation of the Foreign Corrupt Practices Act.
In doing so, the Supreme Court affirmed a May 20, 2013 chancery court decision in a § 220 action brought by the plaintiffs.
According to Wal-Mart's letter, on Oct. 29 it produced the requested documents and subsequently identified the custodian of certain documents as requested by the plaintiffs. The plaintiffs previously had complained about Wal-Mart's rate of production compared with pending derivative litigation in Arkansas.
The underlying Delaware derivative action and two related Arkansas actions are ongoing; the plaintiffs have warned of a scenario in which Arkansas courts could render a judgment that would be binding in Delaware.
To contact the reporter on this story: Michael Greene in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan Tuck at email@example.com
Wal-Mart's letter is available at http://www.bloomberglaw.com/public/document/CONS_W_CA_7726_CS_CONF_ORD_ON_DISC_Indiana_Electrical_Workers_Pen/2.
Plaintiffs' motion for contempt is available at http://op.bna.com/car.nsf/r?Open=mgre-9rqtt9.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)