The California State Teachers’ Retirement System (CalSTRS) has filed a lawsuit against current and former members of Walmart’s board of directors, and other company officers, charging them with gross violation of fiduciary duty in connection with the company’s Mexican bribery scandal. That scandal, extensively examined by a recent New York Times feature, revealed a corporation so eager to expand its Mexican operations that it ignored findings by its own investigators sent to look into the allegations.
CalSTRS’ move takes the form of a derivative-action suit – a suit nominally brought on behalf of Walmart against individuals whose actions damage the retail giant and potentially, investors such as CalSTRS.
CalSTRS is the second largest public pension fund in the United States and holds more than 5.3 million shares of Wal-Mart, valued at $313.5 million, accounting for 0.41 percent of CalSTRS global equities portfolio.
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