Wal-Mart sees incurring loss from bribery probe matter

theflyonthewall.com

In a regulatory filing last night, Wal-Mart (WMT) disclosed it is conducting an internal investigation into, among other things, alleged violations of the Foreign Corrupt Practices Act and other alleged crimes or misconduct in connection with certain foreign subsidiaries, including Wal-Mart de México, as previously reported, along with conducting a voluntary global review of the company's policies, practices and internal controls for FCPA compliance. The company stated: "We expect to continue to incur costs, in addition to the $157M of costs incurred in fiscal 2013, in conducting our on-going review and investigations and in responding to requests for information or subpoenas seeking documents, testimony and other information in connection with the government investigations and in defending the existing and any additional shareholder lawsuits and any governmental proceedings that are instituted against us or any of our current or former officers...We also expect that there will be ongoing media and governmental interest, including additional news articles from media publications on these matters that could impact the perception of our role as a corporate citizen among certain audiences...While we believe that it is probable that we will incur a loss from these matters, given the on-going nature and complexity of the review, inquiries and investigations, we cannot reasonably estimate any loss or range of loss that may arise from these matters. Although we do not presently believe that these matters will have a material adverse effect on our business, given the inherent uncertainties in such situations, we can provide no assurance that these matters will not be material to our business in the future."

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