In the recent press release from Walmart Inc., it was revealed that a derivative action lawsuit, Ontario Provincial Council of Carpenters’ Pension Trust Fund, et al. v. S. Robson Walton, et al., C.A. No. 2021-0827-JTL, was brought by plaintiffs on behalf of and for the benefit of Walmart in the Court of Chancery of the State of Delaware. The proposed settlement, subject to the approval of the court, involves a cash payment of $123 million, which will be paid to Walmart after deducting any court-awarded attorneys’ fees and expenses and any applicable taxes. It's important to note that individual Walmart stockholders will not receive any direct payment from the settlement.
The settlement also includes corporate governance practices that Walmart will implement. As this lawsuit was brought as a derivative action, the cash recovery from the settlement will go to the company. The court is scheduled to hold a hearing on December 20, 2024, at 1:30 p.m., to determine whether to approve the proposed settlement and to consider the application by plaintiffs’ counsel for an award of attorneys’ fees and litigation expenses.
The purpose of the press release was to inform current Walmart stockholders of the pendency of the derivative action, the proposed settlement, and how it affects their legal rights. It's worth noting that there is no proof of claim form for stockholders to submit in connection with this settlement, and stockholders are not required to take any action in response to this notice.
The press release did not provide specific financial metrics or changes from the previous period, but it did highlight the proposed settlement amount and the corporate governance practices that Walmart will implement as part of the settlement. Following these announcements, the company's shares moved 0.5%, and are now trading at a price of $81.31. For the full picture, make sure to review Walmart's 8-K report.
