Legal

The two top executives of Wal-Mart Stores gave shareholders their unequivocal commitment to get to the bottom of alleged bribery charges in Mexico that have surfaced against the company. "If any violations occurred, then appropriate actions will be taken. That is my personal commitment to each of you," S. Robson Walton Jr., chairman, said during the company's annual shareholder meeting here. "We will do the right thing the right way. You have my word on that."

Costco Wholesale Corp. has agreed to pay $3.6 million to settle a lawsuit filed by 29 district attorneys in California that alleged the retailer failed to properly store and dispose of hazardous materials at dozens of outlets in the state. According to the lawsuit, over a five-year period Costco employees didn't label or sort hazardous materials that had sat unsold on shelves or that customers had returned for long periods of time. This included such items as oven cleaner, bleach, pool chlorine and nicotine patches. 

Does eBay monopolize payments through its PayPal unit? Sellers filed a class action lawsuit claiming it does. Courthouse News reports that a judge rejected eBay's motion to dismiss the lawsuit in an unpublished order Tuesday. The report appears to be referring to the Smith v eBay lawsuit filed in April 2010 in which eBay seller Charlotte Smith sued eBay over its policy that forces sellers to use its PayPal online payment service.

eBay and PayPal may be forced to hand over seller records without disclosing the fact to the sellers. Yahoo's Motoramic blog reported on the unusual legal case brought by Ford involving the alleged sale of counterfeit goods on eBay. "Ford Motor Co. wants eBay and PayPal to turn over data on 13 users the automaker accuses of selling fake or unlicensed Ford parts on the online auction site, including names, addresses and bank accounts — and won a court order blocking eBay and PayPal from revealing Ford's demand to the users targeted." 

U.S. lawmakers are frustrated by the lack of cooperation they've received from Wal-Mart in the investigation of the retailer for alleged bribery in Mexico, a committee staffer familiar with the investigation said. Attorneys for Wal-Mart briefed the committee earlier on Monday about the company's anti-corruption compliance program, the person said. But Wal-Mart hasn't committed to briefing the panel on the substantive allegations raised by a New York Times report, a key request of the committee, said the staffer, who spoke on the condition of anonymity. A Wal-Mart spokesman didn't immediately respond to a request for comment. 

The U.S. Department of Justice said it reached a settlement with Home Depot over allegations it illegally fired Army National Guard soldier Brian Bailey. The Justice Department's complaint accused the retailer of willfully violating the Uniformed Services Employment and Reemployment Rights Act of 1994 when it terminated Bailey, an Iraq War veteran, in 2010 because he took too many absences to fulfill his service obligations. As part of the settlement, Home Depot will pay Bailey $45,000 in monetary relief and make changes to its military leaves of absence policy. Additionally, the company denied all allegations made in the complaint.

A Federal District Court in Washington, D.C. unsealed a case against retailers accused of transshipping Chinese-made pencils to avoid antidumping duties. The four named defendants are Staples, OfficeMax, Target and Industries for the Blind. The defendants are accused of transshipment of Chinese-made pencils through third countries such as Taiwan, Indonesia and Vietnam by U.S. importers. The importers would knowingly buy Chinese-made pencils in those countries and claim to U.S. Customs that they originated in those countries. If guilty, the defendants are subject to three times the loss of revenue to the government and a 10 percent duty for false country of origin marking.

The Federal Trade Commission announced that Skechers USA, Inc. has agreed to pay $40 million to settle charges that it deceived consumers by making unfounded claims that Shape-ups would help people lose weight and strengthen and tone their buttocks, legs and abdominal muscles. Consumers who bought these "toning" shoes will be eligible for refunds either directly from the FTC or through a court-approved class-action lawsuit. The settlement with the FTC is part of a broader agreement also being announced today resolving a multistate investigation which included attorneys general from 44 states and the District of Columbia.

Home Depot faces $51,480 in fines after its store in Saratoga Springs, N.Y. was cited by federal regulators for “repeat and serious” workplace violations. OSHA’s inspection found the required working space around eight electrical equipment panels was used for storage, restricting employees’ access to circuit breakers. Because the company was cited by OSHA in 2010 and 2012 for similar hazards at New Hampshire and New Jersey stores, respectively, OSHA issued a citation with $44,000 in proposed fines for the repeat violation, as well as $7,480 in penalties for two other violations.

The nation's second largest public pension fund is suing Wal-Mart for breaching its fiduciary duty in connection with allegations that the retailer's Mexico subsidiary engaged in a bribery scheme and the company failed to properly investigate and disclose the matter. The California State Teachers' Retirement System (CalSTRS) filed a derivative action against Wal-Mart in the Court of Chancery in Wilmington, Del., where the retailer is incorporated. The suit claims that Wal-Mart's top management and directors were alerted to evidence that Walmart de Mexico executives were involved in the payment of bribes to expedite the expansion of Wal-Mart stores in Mexico.