Wal-Mart faces grand jury review

LITTLE ROCK, Ark. — A federal grand jury is reviewing allegations of misspending within Wal-Mart Stores Inc., an investigation triggered by the world’s largest retailer when it voluntarily handed over internal documents to the Justice Department, a company spokesman said.

Wal-Mart spokesman Marty Heires told The Associated Press on Friday that the company is limited in what it can say about the inquiry because the probe is being handled by a grand jury.

“We have committed fully to cooperate with the federal authorities, and we’re doing that,” Heires said.

Wal-Mart shares fell 97 cents, or 2 percent, to close at $46.81 on the New York Stock Exchange, its lowest close in about two years.

Wal-Mart, the world’s largest retailer, disclosed last month that it had given documents to federal prosecutors, but Friday’s word of a grand jury is a clear indication that the Justice Department is acting on the information. Former vice chairman Tom Coughlin, who was the No. 2 figure in Wal-Mart’s hierarchy before his retirement last year, left his board seat when the company said in a federal filing that it was giving investigators documents that show up to $500,000 was misspent.

Coughlin, through his attorney, has denied wrongdoing.

On Friday, Coughlin lawyer William Taylor in Washington, D.C., would not discuss the investigation. U.S. Attorney Bob Balfe’s office also had no comment.

Analyst Burt Flickinger, managing director at Strategic Resources in New York, said Wal-Mart did itself no harm by calling in authorities — especially because of allegations Coughlin engaged in spending to the misspending involved anti-union activities to combat union organization.

Earlier this year, Wal-Mart avoided federal criminal charges in a case in Pennsylvania in which the company was accused of using illegal immigrants to clean floors in stores in 21 states.