Former Wal-Mart Vice Chairman Resigns From Board in Wake of Investigation

Bentonville, Ark., Wal-Mart Stores Inc. has asked its former vice chairman, Thomas M. Coughlin, to resign from the board of directors. The resignation follows an investigation related to the use of corporate-owned gift cards and personal reimbursements. The retailer said Coughlin had disputed the results of the investigation, which involves an estimated $100,000 to $500,000 of funds in controversy, published reports say. In a filing with the Securities and Exchange Commission, Wal-Mart said that the use of the gift cards and personal reimbursements appeared to have been obtained through falsified third-party invoices and expense reports. The company said it reported the investigation results to the U.S. Attorney for the Western District of Arkansas.

In addition, Wal-Mart said it has fired three other unnamed employees in connection with the case, one of whom was a company officer. In January, Coughlin retired from Wal-Mart’s No. 2 executive position as vice chairman after 25 years with the company. He had served on the board since 2001, and had been expected to remain on the board through the shareholder meeting on June 3.