A U.S. judge is granting class action status to Wal-Mart investors suing the world’s largest retailer over allegations that it covered up a bribery scheme in Mexico.
In a ruling this week, a U.S. District Judge in Fayetteville, Arkansas, dismissed Wal-Mart’s argument that the City of Pontiac General Employees’ Retirement System could not lead a class action suit because it suffered no related financial losses.
Wal-Mart’s stance was based on a certain accounting method.
But U.S. District Judge Susan Hickey ruled that the pension fund showed losses using another accounting method and that Wal-Mart failed to adequately explain why its accounting method is preferable.
Investors said Wal-Mart knew about the bribery scheme as early as 2005, seven years before allegations were made public.
Wal-Mart said Thursday it’s considering an appeal.