Saturday, April 23, 2005

Federal Grand Jury Focuses on Wal-Mart

CHICAGO -- Wal-Mart Stores Inc., which has been on a mission to rehabilitate its public image, suffered a setback Friday when it confirmed it is the subject of a federal grand jury investigation.The probe involves accusations that the former vice chairman at the world's biggest retailer misspent up to $500,000 -- some of it allegedly for widely criticized anti-union activity."We're aware that there's an investigation," said Wal-Mart spokesman Marty Heires on Friday. "We're cooperating."

He wouldn't say whether any Wal-Mart workers or documents had been subpoenaed.Wal-Mart stock on Friday fell 2 percent, or 97 cents, to $46.81, nearly its lowest close in two years.On March 25, former vice chairman Tom Coughlin retired from Wal-Mart's board amid an internal investigation over personal reimbursements, payment of third-party invoices and the use of company gift cards.Wal-Mart referred the matter to a U.S. attorney's office in Arkansas. The resulting investigation by federal prosecutors is the latest blemish to show up on the $285 billion discount chain.

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