Categories: OLD Media Moves

Wal-Mart, the New York Times and SEC filings

Michelle Leder of Footnoted.org has an interesting post on Tuesday noting that Wal-Mart Stores warned in its 10-Q filing two weeks ago about the New York Times article that ran Tuesday about its Mexican operations.

Leder writes, “As with most of what we find, we’ll often flag something, and wait for events to unfold. Sometimes, this happens relatively quickly and sometimes it can take six months or longer. At Wal-Mart, it took exactly two weeks. Here’s the new disclosure that caught our attention two weeks ago:

“The Company expects that there will be ongoing media and governmental interest, including additional news articles from media publications on these matters, which could impact the perception among certain audiences of the Company’s role as a corporate citizen.”

“The additional news article that Wal-Mart seemed to be referring to was this sharply researched piece in today’s New York Times, which talked about a shocking pattern of corruption. Here’s a key paragraph from the Times’ piece:

“Rather, Wal-Mart de Mexico was an aggressive and creative corrupter, offering large payoffs to get what the law otherwise prohibited. It used bribes to subvert democratic governance — public votes, open debates, transparent procedures. It used bribes to circumvent regulatory safeguards that protect Mexican citizens from unsafe construction. It used bribes to outflank rivals.”

“Shortly after the story first posted yesterday on the Times’ site, Wal-Mart put out this statement, which included a video taped by Wal-Mart Vice President for Corporate Communications David Tovar. The statement includes  numbers that we haven’t seen in Wal-Mart’s SEC disclosures on the scope of its ongoing efforts related to the Foreign Corrupt Practices Act investigation, including hiring more than 300 third-party legal and accounting experts. (In the Q, the company notes that it spent $48 million on this during the third quarter and $99 million during the first three quarters).”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

Recent Posts

Indianapolis Biz Journal seeks a news editor

The Indianapolis Business Journal is looking for our next news editor, a role that focuses…

7 hours ago

Axios hires Berkowitz as ME for media and markets coverage

Axios has chosen Ben Berkowitz to be its next managing editor of business and markets.…

12 hours ago

Business Insider hires Ortega as director of newsroom operations

Business Insider editor in chief Jamie Heller sent out the following on Monday: I'm thrilled…

13 hours ago

Rest of World promotes Chandran to deputy editor

Rest of World editor in chief Anup Kaphle sent out the following on Monday: We are excited…

13 hours ago

FT hires Venugopal as India newsletter editor

The Financial Times has hired Veena Venugopal as its India newsletter editor. She has been working at…

14 hours ago

FT taps Parkin to be Middle East and Africa news editor

Benjamin Parkin has been named Middle East and Africa news editor at the Financial Times, based…

17 hours ago