Judge recommends Wal-Mart face shareholder suit

Bentonville, Ark. – U.S. Magistrate Judge Erin Setser has recommended that Wal-Mart Stores Inc. and former Wal-Mart CEO Mike Duke face a shareholder lawsuit alleging they concealed corrupt activities at Wal-Mart’s Mexican operation.

The suit, filed by a Michigan pension fund, claims Wal-Mart knew of bribery allegations involving its Wal-Mart de Mexico business in 2005 and conducted an internal investigation in 2005 and 2006, but never notified shareholders.

Setser’s recommendation is subject to a final decision by U.S. District Judge Susan Hickey, who does not have to follow it. Wal-Mart has not publicly commented on the matter.

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