Walmart agrees to $282 million settlement in corruption lawsuit
Walmart is writing a check for $282 million to settle an investigation into its questionable business practices overseas, including bribing Brazilian and Mexican officials for permits, reports AP.
Why it matters: The civil and criminal allegations have negatively impacted Walmart's reputation as the company had to deal with investor lawsuits, and spend millions on compliance, says the New York Times. The U.S. Securities and Exchange Commission and Department of Justice have indicated this has been one of the largest investigations under the Foreign Corrupt Practices Act, which prevents American companies from bribing foreign officials, according to the Times.
- This legal battle has collectively cost the corporate giant $900 million, and the investigation started in 2012, per AP.
- Walmart will be paying $138 million to avoid prosecution in the U.S., and its Brazilian subsidiary has plead guilty to violating the Foreign Corrupt Practices Act.
- The SEC declared a $144 million settlement against Walmart also on Thursday for “failing to operate a sufficient anti-corruption compliance program” in Brazil, China, India and Mexico, according to AP.