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Coughlin pact sealed despite deadline passing
BENTONVILLE, Ark.—Three weeks have passed since Wal-Mart settled its lawsuit against a former executive but the terms of the pact won’t be released until sometime in the coming week.
Wal-Mart Stores Inc., the world’s largest retailer, had sued former executive Tom Coughlin, saying the former right-hand-man to company founder Sam Walton had defrauded it before accepting a retirement package in 2005. In 2006, Coughlin pleaded guilty to federal charges of wire fraud and tax evasion. He admitted using company funds to take care of his hunting dogs, lease a private hunting area, upgrade his pickup truck and buy liquor and a cooler, among other items. When the settlement was announced Aug. 21—as potential jurors gathered for jury selection—Benton County Circuit Judge Jay Finch ordered the record sealed for 20 days. That time has passed, but some attorneys are yet to sign an agreed order ending the lawsuit, Finch’s office said. The order should be available Wednesday or later, Finch’s office said. A filing with the Securities and Exchange Commission revealed that Wal-Mart will pay $6.75 million to Coughlin, significantly less than the ex-executive’s original $17 million retirement package. The settlement may contain other terms. A federal judge originally sentenced Coughlin to 27 months of home detention plus five years probation over the thefts, but prosecutors appealed the sentence, calling it too lenient. In February, a judge added community service hours to his sentence, but allowed Coughlin to continue serving his sentence at home. |
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