Robbins Geller Scores Class Certification in Wal-Mart Securities Fraud Class Action
On September 20, 2016, Judge Susan O. Hickey of the U.S. District Court for the Western District of Arkansas certified a class of investors in City of Pontiac General Employees’ Retirement System v. Wal-Mart Stores, Inc. The court named City of Pontiac General Employees’ Retirement System as the class representative and appointed Robbins Geller as class counsel.
Wal-Mart operates retail stores in various formats worldwide. The case arises from allegations published by The New York Times in an article released on April 21, 2012 describing an alleged bribery scheme that occurred in Mexico. The case charges defendants with unlawful and unethical conduct by issuing materially false and misleading statements during the class period. Wal-Mart portrayed itself to investors as a model corporate citizen that had proactively uncovered potential corruption and promptly reported it to law enforcement. In truth, a former in-house lawyer had blown the whistle on Wal-Mart’s corruption years earlier, and Wal-Mart concealed the allegations from law enforcement by refusing its own in-house and outside counsel’s calls for an independent investigation. As a result of defendants’ misleading statements, investors were purchasing shares at artificially inflated prices, which crashed when the Times revealed the truth.
Robbins Geller partner Jason A. Forge leads the team representing the City of Pontiac General Employees’ Retirement System.
City of Pontiac General Employees’ Retirement System v. Wal-Mart Stores, Inc., et al., No. 5:12-cv-5162, Order (W.D. Ark. Sept. 20, 2016).