Thread: Wal-Mart's legal woes irk shareholders due to illegal immigr

http://www.marketwatch.com/news/story.a ... eid=google

By Jennifer Waters, MarketWatch
Last Update: 12:00 PM ET June 1, 2005

CHICAGO (MarketWatch) - An influential group of Wal-Mart shareholders who control more than $545.8 million in stock called on Wal-Mart Wednesday to get its compliance house in order.

The group said it had "serious concerns" about the avalanche of reports ranging from discrimination to employee fraud and illegal immigrant workers, among other issues, and wants Wal-Mart to create a special committee of independent directors to investigate them. As well, the group is seeking a probe of Wal-Mart's internal system of checks and balances with its own policies and standards.

"We are deeply concerned that the frequency of reports exposing legal and regulatory non-compliance at the company could be indicative of inadequate internal controls and a lack of board oversight and accountability," said New York City Comptroller William C. Thompson Jr.

In a letter to Roland Hernandez, chairman of Wal-Mart's audit committee, the group urged the board to produce a report on its findings with recommendation by December. Wal-Mart's annual meeting is scheduled for Friday

Wal-Mart officials were unavailable for comment.

Shares of Wal-Mart (WMT: news, chart, profile) climbed 82 cents, or 1.8%, to $48.06.

Of particular worry to the group were the raids by U.S. federal agents of 60 Wal-Mart stores in 21 states, resulting in the arrest of 250 illegal immigrant workers; the related $11 million settlement of charges that Wal-Mart exploited illegal immigrants; and Wal-Mart's 2005 settlement with the U.S. Department of Labor of 24 violations of child labor laws in three states.

The company also is facing the largest class-action sex discrimination lawsuit in U.S. history involving 1.5 million current and former female employees. It's also in the middle of an internal investigation into about $500,000 in questionable transactions of former Vice Chairman Thomas Coughlin over a five-year period. Coughlin retired late last year and was ousted from the board earlier this year.

"These negative reports and headlines have damaged Wal-Mart's global reputation," Thompson added.

With Thompson, who is the investment adviser to the $85 billion New York City Pension Funds, are Edward M. Smith, chairman of the $10.8 billion Illinois State Board of Investment, Karina Litvack, head of governance and socially responsible investing of F&C Asset Management, with $250 billion under management, and, Jason Fletcher, Americas equity manager of the $36 billion U.K. University Superannuation Scheme.

"The company has a duty to mount the independent investigation we are seeking - primarily because it's the right thing to do, but also because such practices could expose the company to legal liability," Smith said. "The ramifications for shareholders could be disastrous."

I want the DOJ to start with the CEO responsible at Wal-Mart and the rest of the executive management and clean house. They knew they were dealing with illegals trying to be the low cost retailer and they got caught. Now nail them!

Five years in the slammer would do them good and send a message to the other management slime balls in this country doing the same thing.

HOLD THEM ACCOUNTABLE!

Originally Posted by StraightShooter

I want the DOJ to start with the CEO responsible at Wal-Mart and the rest of the executive management and clean house. They knew they were dealing with illegals trying to be the low cost retailer and they got caught. Now nail them!

Five years in the slammer would do them good and send a message to the other management slime balls in this country doing the same thing.

HOLD THEM ACCOUNTABLE!

I couldn't of said it better! 250 hired illegals is just a drop in the bucket, and the 11 million dollar fine is pocket change to that mega-hole.