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Wal-Mart rejects settlement with U.S. over alleged bribery - Bloomberg

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Reuters
Last Updated : Oct 07 2016 | 1:57 AM IST

(Reuters) - Wal-Mart Stores Inc rebuffed a proposal by U.S. prosecutors to pay at least $600 million to settle a corruption probe into the company's practices in markets including Mexico, India and China, Bloomberg reported, citing people familiar with the matter.

Prosecutors have now gone back to seek more evidence about the company's alleged bribery in Mexico to put pressure on the retailer to settle, Bloomberg reported. (https://bsmedia.business-standard.combloom.bg/2e5W54p)

Some of Wal-Mart's actions in Mexico may be too old to prosecute, the report said.

Officials are working to strike a deal with the Bentonville, Arkansas-based company before a new U.S. administration takes over in January, according to the Bloomberg report.

Wal-Mart is cooperating fully with the government and compliance with the US Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws is a key priority, company spokesman Greg Hitt said.

The U.S. Department of Justice has been conducting a long-running investigation into potential misconduct by Wal-Mart, including violations of FCPA, in some overseas markets, including China, Brazil, India and Mexico.

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Wal-Mart is also facing a class-action lawsuit filed by its shareholders including a Michigan pension fund, accusing it of defrauding shareholders by concealing suspected bribery to help it expand faster in Mexico.

(Reporting by Abhijith Ganapavaram and Gayathree Ganesan in Bengaluru; Editing by Shounak Dasgupta)

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First Published: Oct 07 2016 | 1:47 AM IST

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