Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/walmart/)
today announced that the firm was appointed as lead counsel in a
securities class action captioned City of Pontiac General Employees'
Retirement System v. Wal-Mart Stores, Inc., Case No.
5:12-cv-5162-SOH, pending in the Western District of Arkansas. The City
of Pontiac General Employees' Retirement System was appointed as lead
plaintiff in this action on behalf of purchasers of Wal-Mart Stores,
Inc. ("Wal-Mart" or the "Company") (NYSE:WMT) common stock between
December 8, 2011 and April 20, 2012 (the "Class Period") who suffered
losses in connection therewith, including Class Period purchasers who
sold those shares between April 23, 2012 and May 21, 2012.
The action alleges that Wal-Mart and certain of its officers and
directors violated the Securities Exchange Act of 1934 by failing to
disclose that Wal-Mart and its executives were involved in a
multi-million-dollar bribery scheme at the Company's Mexican subsidiary,
Wal-Mart de Mexico ("Wal-Mart Latin America"). On April 21, 2012, The
New York Times published an article reporting that Wal-Mart had
"shut . . . down" an investigation concerning evidence that Wal-Mart
Latin America had engaged in "widespread bribery," which included a
paper trail of hundreds of suspect payments totaling more than $24
million. The article reported that top executives at Wal-Mart and
Wal-Mart Latin America knew about but disregarded the bribery scheme. As
a result of this news, Wal-Mart's stock declined nearly 5% on April 23,
2012, on volume of 38 million shares. The stock dropped again on April
24, 2012, to close at $57.77 per share on volume of 30 million shares,
and on April 25, 2012, fell to $57.36 per share on volume of 28 million
shares, as investors absorbed this shocking news.
The complaint alleges that defendants knew, but concealed from the
investing public during the Class Period, that the Company had violated
the Foreign Corrupt Practices Act in connection with the bribery
payments and that Wal-Mart management did not address ethical concerns
in a "timely and effective manner" as represented by defendants.
Wal-Mart is the subject of a probe in Mexico by Mexican authorities and
the subject of criminal and congressional investigations in the United
According to the complaint, defendants' allegedly false statements
caused Wal-Mart stock to trade at artificially inflated levels
throughout the Class Period. As the truth began to leak into the market,
the price of Wal-Mart's artificially inflated stock declined
significantly. These revelations, and the elimination of the artificial
inflation from Wal-Mart's stock price, caused economic harm to investors
who purchased Wal-Mart common stock at artificially inflated prices
during the Class Period.
Plaintiff seeks to recover damages on behalf of all purchasers of
Wal-Mart common stock during the Class Period (the "Class"). If you
purchased Wal-Mart common stock during the Class Period and sold your
stock after April 23, 2012, when the alleged fraud was revealed, have
any information regarding the allegations contained in the complaint, or
generally wish to discuss this action or your rights or interests,
please contact Jason Forge of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at [email protected].
If you are a member of this class, you can view a copy of the complaint
as filed or join this class action online at http://www.rgrdlaw.com/cases/walmart/.
Robbins Geller represents U.S. and international institutional investors
in contingency-based securities and corporate litigation. With nearly
200 lawyers in nine offices, the firm represents hundreds of public and
multi-employer pension funds with combined assets under management in
excess of $2 trillion. The firm has obtained many of the largest
recoveries in history and has been ranked number one in the number of
shareholder class action recoveries in MSCI's Top SCAS 50 every
year since 2003. According to Cornerstone Research, the firm's
recoveries have averaged 35% above the median for all firms over the
past seven years (2005-2011). Please visit http://www.rgrdlaw.com
for more information.
Robbins Geller Rudman & Dowd LLP