Wal-Mart Must Face Lawsuit On Alleged Mexican Bribery- U.S Judge.

“Even after Wal-Mart Stores Inc. came to know that a damaging media report was being prepared on dealing with alleged bribery, still the Store authorities concealed the suspected corruption that took place in its Mexico operations and defrauded the shareholders. Therefore the store does not deserve that its lawsuit should be dismissed”, said the Judge of U.S court. The lawsuit has been led by Michigan Pension Fund against Mike Duke the former Chief Executive Officer and the largest retailer of the world. Mr. Eric Setser a U.S Magistrate in Fayetteville, Arkansas, has recommended on Thursday that Wal-Mart’s request for the dismissal of the lawsuit should be rejected.

On the other hand spokesman of Wal-Mart has expressed that the company disagrees with the recommendation of Setser and also added that the District Judge of U.S Susan Hickey should review this subject. He further said that District Judges often follow the recommendations of Magistrate Judges who are bound to follow their recommendations.

As The New York Times published the report on the investigation carried out on the alleged bribery on 22^nd of April 2012 the stock price of Wal-Mart Store Co., Inc. that was mostly seen as volatile fell by 8.2 percent after three days of the report. In the plaintiffs that were led by City of Pontiac General Employees Retirement System claimed that along with other officials of Wal-Mart Mr. Duke was also well aware from 2005 that Wal-Mart de Mexico Unit was bribing the local officials for the opening of their store as soon as possible. The plaintiffs further stated that even after knowing of the issue they did not investigated on it from the very beginning it was started (i.e. 2005 and 2006).

From 8th of December 2011 to 22nd of April 2012 the court case on Wal-Mart seeks class action status. And soon after the article on it was published, the stock shares of Wal-Mart were seen increasing. On Friday, it was recorded up to 39 percent at $79.08, while on Thursday it raised up to 26 percent, and it showed an increase in stock graph of Wal-Mart. However, today the stock price of Wal-Mart varies between $78.52 and $79.28.