In a Securities and Exchange Commission filing late last month, Walmart said it expects to incur a loss as a result of investigations and lawsuits related to the alleged systematic bribery scheme in its Mexican subsidiary. “Given the on-going nature and complexity of the review, inquiries, and investigations,” the company wrote, “we cannot reasonably estimate any loss or range of loss that may arise from these matters.”
It’s becoming increasingly clear that, after Walmart allegedly violated federal law by bribing Mexican officials, it began working behind the scenes to weaken the very law that it allegedly broke. Sure, this is a violation of the company’s internal ethics policy (“Never cover up or ignore an ethics problem”). However, if the allegations are true, Walmart also appears to have violated the U.S. Foreign Corrupt Practices Act.