NEW YORK — A federal appeals court has rejected a shareholder lawsuit filed against key directors at Wal-Mart Stores Inc. that claimed they allowed and concealed alleged bribery in the company's Mexico division.
Chief Judge William Riley wrote that the shareholders, including the Louisiana Municipal Police Employees' Retirement System, did "not give rise to a reasonable reference" that the board of directors learned of the suspected bribery while it was being covered up and the internal investigation squashed. It upheld a district court's dismissal.
The case came after a New York Times report that Wal-Mart's Mexican unit paid millions of dollars in bribes to speed building permits and gain other favors.
Wal-Mart said the ruling showed that the board of directors, not individual shareholders, has authority to manage those kinds of corporate matters.