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Employee relationsLatest News

Wal-Mart to sue former exec over five-year spending spree

by dan thomas 29 Jul 2005
by dan thomas 29 Jul 2005

Wal-Mart is suing a former senior executive for more than US$5m (£2.8m), alleging that he used his expenses account to buy personal items including dog food, underwear and a Celine Dion CD.

The retail giant has claimed that former vice-chairman Thomas Coughlin, who was paid a total of $15m (£8.5m) over two years, went on a five-year, $500,000 (£285,000) spending spree at its expense.

Wal-Mart wants to void his retirement package and reclaim about $5m (£2.8m) in pay and bonuses, claiming he engaged in gross misconduct.

The 124-page lawsuit claims that Coughlin and “a group of carefully loyal subordinates” misappropriated “hundreds of thousands of dollars and property for his personal benefit”.

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But Coughlin’s lawyer said Wal-Mart’s lawsuit was “another step in its relentless campaign to discredit a man who dedicated his life to the company and its employees for 27 years”.

“Wal-Mart has used its unlimited resources to mount an attack on Mr Coughlin while denying him any meaningful opportunity to defend himself,” the lawyer said.

dan thomas

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