Stay current on changes and developments in corporate law with a wide variety of resources and tools.
By Michael Greene
April 16 — Stockholders accusing Wal-Mart Stores Inc. executives of breaching their fiduciary duties by misleading investors and covering up possible FCPA violations at its subsidiary in Mexico are appealing the dismissal of their derivative lawsuit to the U.S. Court of Appeals for the Eight Circuit.
Last month, a federal judge dismissed the plaintiff stockholder claims on the ground that they had not established that a pre-suit demand on Wal-Mart's directors to take action would be futile.
Applying Delaware law, U.S. District Court for the Western District of Arkansas Judge Susan O. Hickey found that plaintiffs failed to plead with specificity that a majority of Wal-Mart's boards of directors faced “a substantial likelihood of personal liability so that their ability to consider a demand impartially would be compromised.”
While the Arkansas derivative litigation has been ongoing, the plaintiff in the fiercely contested Delaware General Corporation Law §220 books and records action in the chancery court has filed a contempt motion against Wal-Mart for allegedly failing to comply with a production order requiring the retailer to turn over internal documents related to what directors may have known about the bribery claims.
The plaintiff had earlier raised concerns over whether the Arkansas action can render a judgment that would be binding on an underlying derivative lawsuit in Delaware.
Recently, Wal-Mart sent a letter to the chancery court asserting that it has provided the plaintiff with all the responsive documents that were inadvertently omitted from its earlier production. Chancellor Andre G. Bouchard has scheduled oral argument about the contempt motion for May 7.
The notice of appeal is available at http://www.bloomberglaw.com/public/document/Cottrell_v_Duke_et_al_Docket_No_412cv04041_WD_Ark_Apr_25_2012_Cou/2.
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)