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International Trade Archives

Wal-Mart and Investors Contest Privileged Docs Regarding Bribery Scandal

On April 21, 2012, the New York Times published an article concerning Wal-Mart Stores Inc. ("Wal-Mart" or the "Company") covering up a bribery campaign in Mexico. An internal Wal-Mart investigation had revealed widespread bribery. The story led to a steep decline in Wal-Mart's stocks, and because the investors were misled about the bribery, they sued the Company for violating U.S. securities laws. The shareholders are being led by a pension fund, City of Pontiac General Employees' Retirement System ("PGERS").

Bahamas Company Argues New York Lacks Jurisdiction

In our article, "Supreme Court Framework for Extraterritorial Cases," we analyzed the requirements international cases face before being tried under United States laws, such as the requirement that the "focus" of the relevant statute pertain to regulating foreign organizations. However, finding the proper jurisdiction is the first hurdle an international lawsuit must overcome before proceeding in the U.S.