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Business performanceCorporate governanceEmployment lawEthicsLatest News

Wal-Mart director forced to resign over gift card scandal

by dan thomas 29 Mar 2005
by dan thomas 29 Mar 2005

The former head of Wal-Mart’s US retail operations has been forced to resign from the board, after allegations that up to $500,000 (£266,822) was obtained from the company through unauthorised use of gift cards and false expense reports.


Thomas Coughlin, who remained a company director despite retiring as vice-chairman in January, had been with the retail giant since 1978 when he joined as head of security.


He disagreed with the findings of an internal investigation into the matter, but agreed to resign from the board of directors.


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Wal-Mart, parent of UK supermarket chain Asda, said that three employees had also left the company as a result of the investigation, including one company officer.


In a statement filed with the US Securities and Exchange Commission Wal-Mart said: “The company’s request for Mr Coughlin’s resignation arose from a disagreement between Coughlin and the company concerning the results of a recent internal investigation into the alleged unauthorised use of corporate-owned gift cards and personal reimbursements that appear to have been obtained from the company through the reporting of false information on third-party invoices and company expense reports.”


 

dan thomas

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