SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/walmart/) today announced that the firm was appointed as lead counsel in a securities class action captioned City of Pontiac General Employees’ Retirement System v. Wal-Mart Stores, Inc., Case No. 5:12-cv-5162-SOH, pending in the Western District of Arkansas. The City of Pontiac General Employees’ Retirement System was appointed as lead plaintiff in this action on behalf of purchasers of Wal-Mart Stores, Inc. (“Wal-Mart” or the “Company”) (NYSE:WMT) common stock between December 8, 2011 and April 20, 2012 (the “Class Period”) who suffered losses in connection therewith, including Class Period purchasers who sold those shares between April 23, 2012 and May 21, 2012.
The action alleges that Wal-Mart and certain of its officers and directors violated the Securities Exchange Act of 1934 by failing to disclose that Wal-Mart and its executives were involved in a multi-million-dollar bribery scheme at the Company’s Mexican subsidiary, Wal-Mart de Mexico (“Wal-Mart Latin America”). On April 21, 2012, The New York Times published an article reporting that Wal-Mart had “shut . . . down” an investigation concerning evidence that Wal-Mart Latin America had engaged in “widespread bribery,” which included a paper trail of hundreds of suspect payments totaling more than $24 million. The article reported that top executives at Wal-Mart and Wal-Mart Latin America knew about but disregarded the bribery scheme. As a result of this news, Wal-Mart’s stock declined nearly 5% on April 23, 2012, on volume of 38 million shares. The stock dropped again on April 24, 2012, to close at $57.77 per share on volume of 30 million shares, and on April 25, 2012, fell to $57.36 per share on volume of 28 million shares, as investors absorbed this shocking news.
The complaint alleges that defendants knew, but concealed from the investing public during the Class Period, that the Company had violated the Foreign Corrupt Practices Act in connection with the bribery payments and that Wal-Mart management did not address ethical concerns in a "timely and effective manner" as represented by defendants. Wal-Mart is the subject of a probe in Mexico by Mexican authorities and the subject of criminal and congressional investigations in the United States.
According to the complaint, defendants' allegedly false statements caused Wal-Mart stock to trade at artificially inflated levels throughout the Class Period. As the truth began to leak into the market, the price of Wal-Mart’s artificially inflated stock declined significantly. These revelations, and the elimination of the artificial inflation from Wal-Mart’s stock price, caused economic harm to investors who purchased Wal-Mart common stock at artificially inflated prices during the Class Period.
Plaintiff seeks to recover damages on behalf of all purchasers of Wal-Mart common stock during the Class Period (the "Class"). If you purchased Wal-Mart common stock during the Class Period and sold your stock after April 23, 2012, when the alleged fraud was revealed, have any information regarding the allegations contained in the complaint, or generally wish to discuss this action or your rights or interests, please contact Jason Forge of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/walmart/.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm’s recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information.