Labaton Keller Sucharow is co-lead counsel in a stockholder derivative action brought by Plaintiffs Ontario Provincial Council of Carpenters’ Pension Trust Fund, Police & Fire Retirement System of the City of Detroit, and Norfolk County Retirement System (Plaintiffs) on behalf of Walmart Inc. (Walmart or the Company). The action alleges breaches of fiduciary duty by certain Walmart officers and directors for failures of oversight in connection with Walmart’s prescription opioids business, which exacerbated the United States opioid epidemic and resulted in billions of dollars of liabilities for the Company.
Following a Section 220 demand and thorough investigation, on September 27, 2021, Plaintiffs filed a Verified Stockholder Derivative Complaint alleging that certain Walmart officers and directors breached their fiduciary duties of oversight in connection with Walmart’s distribution and dispensation of opioid medications and alleged violations of the Controlled Substances Act (CSA). On February 22, 2022, Plaintiffs filed an amended complaint asserting claims for breach of fiduciary duty pertaining to Walmart’s distribution and dispensation of opioid medications and alleged violations of the CSA against Defendants Flynn, Harris, Horton, Jorgensen, Mayer, McMillon, Penner, Reinemund, R. Walton, and S. Walton in their capacities as current or former Walmart directors or officers. On April 26, 2023, the Court issued an order denying Defendants’ motion to dismiss in large part and denied Defendants’ motion to stay the action.
In October, the Parties reached an agreement to settle the matter for $123 million plus corporate governance reforms.
The case is Ontario Provincial Council of Carpenters’ Pension Trust Fund, et al. v. Walton, et al., C.A. No. 2021-0827-JTL (Del. Ch.). Labaton Keller Sucharow represents The Ontario Provincial Council of Carpenters' Pension Trust Fund.
