Wal-Mart Stores last week filed a lawsuit against former Vice Chairman Tom Coughlin in an effort to void Coughlin’s retirement package and to recoup the $500,000 that Wal-Mart alleges Coughlin stole from the retailer, as well as $6.5 million in past bonuses.
The suit, filed July 27 in Benton County (AR) Circuit Court, details how Coughlin allegedly misappropriated at least $6,800 in gift cards and falsified expense claims, per news reports (July 20 Xtra).
Wal-Mart had already rescinded Coughlin’s retirement package, worth a reported $14 million in restricted stock and salary; Wal-Mart filed the suit to solidify its legal position in revoking Coughlin’s package, and to recoup $6.5 million it paid him in bonuses during the seven years of alleged fraud, per news reports.
Coughlin negotiated his retirement package last year, before the alleged embezzlement came to light in December (March 29 Xtra). He was forced to resign from Wal-Mart’s board of directors in March. A separate grand jury investigation continues.
Meanwhile, in a related development, former Wal-Mart VP Jared Bowen filed a defamation suit against Wal-Mart for disputing Bowen’s claim that he blew the whistle on Coughlin. Bowen’s suit, filed July 21 in Benton County Circuit Court, follows Wal-Mart’s detailed statement outlining how Bowen allegedly served as an accomplice to Coughlin. Wal-Mart issued the statement in response to Bowen’s complaint to the U.S. Labor Department.
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