Wal-Mart’s stock fell almost 5 percent on Monday, accounting for about one-fifth of the losses in the Dow Jones industrial average, as investors reacted to a bribery scandal at the retailer’s Mexican subsidiary and a report that an internal investigation was quashed at corporate headquarters in Arkansas.
The New York Times reported on Sunday that Wal-Mart investigators had found credible evidence that the subsidiary, Wal-Mart de Mexico, had paid millions of dollars in bribes to support expansion in Mexico, where the retailer has one in five of its stores. Told of this evidence in 2005, top executives in Bentonville, Ark., shut down the investigation, The Times reported.
On Monday, politicians from Washington to Mexico City called for outside investigations into Wal-Mart’s conduct.
Source: The New York Times